2016 (11) TMI 170

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....GC) for conducting oil exploration operation in Krishna Godavari basin. The Appellant is a sub-contractor for the said operator engaged in oil exploration. The Appellant imported a vessel along with equipment, bunker and other consumables in connection with the petroleum operations. The appellant filed bill of entry No. 47 dated 21.01.2011 for import clearance of stores and consumables available on board the vessel at the time of its conversion, inter alia, Marine Gas Oil (MGO) availing exemption in terms of Sr. No. 217 of Notification No. 21/2002-Cus. The Appellant submits that the Marine Gas Oil (MGO) is the fuel which is used to run these vessels. On arrival, conversion certificates were issued by the customs confirming the said vessels ....

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....nal dated 09 01.2013. on appeal , Commissioner (A) vide the impugned order dismissed the appeal. 2.  Hence this appeal. 3.  Learned counsel for the appellant, Shri G. Prahlad, submits that the imported Marine Gas Oil does not conform to BIS specification 1460 for Light Diesel Oil but in fact is required to confirm to ISO:8217 applicable to Marine Distillate Fuel DMA. Hence classification of Marine Gas Oil under residuary tariff entry 271001990 is appropriate in terms of supplementary note to Chapter 27. It was further submitted that any petroleum block in which the operations are to be carried out cannot be reached without voyage from port and the vessel has to be necessarily re-exported after completion of exploration activity,....

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.... learned counsel drew our attention to a letter written by the appellants to the Customs saying that the sample may be referred to CRCL for re-examination. Further no action was taken on this letter probably because by the time the letter was written a number of years have already passed. Since it is not the case of the Revenue that the product imported by the appellant does not fulfill the parameters for MGO as per the Indian Standards, we are not in a position to uphold the impugned order taking a stand that what is imported is LDO and not MGO and therefore the benefit of exemption is not available. In fact the learned counsel went one step further and submitted that even going by the r.p.m. of the Drillship imported by them it can be sa....