2017 (7) TMI 267

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.... 2007 and has been coming up before the Bench regularly from 2014 and was adjourned for some reason or other. Since the matter is of 2007, we reject the request for adjournment and take up the appeal for disposal. 3. Heard the Ld. DR and perused the records. 4. The relevant facts that arise for consideration are the appellant herein were running a vessel called MV Prabhu Jivesh. The subject vessel after taking bunkers at Singapore berthed at Tuticorin in India and proceeded to Vizag; a voyage which was converted into coastal run and converted back to foreign run on 06.06.1999 at Chennai port. Departmental authority after scrutinising the voyage records of the said MV Prabhu Jivesh came to a conclusion that the bunkers which formed has....

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....missible and there is no mis-declaration and non-payment of customs duty is only due to genuine difference in perception of the issue. 6. Ld. DR reiterates the finding of the lower authorities. 7. On careful consideration of the submissions made by the DR and perusal of records, we find that the appeal filed by the appellants is devoid of any merits. 8. The first appellate authority in the impugned order has recorded detailed findings which are at para 6 and are reproduced: 6. I have carefully gone through the case records, Order in Original, contentions of the appellants in writing and during personal hearing. I find the following issues to be decided. Whether the orders for assessment, interest and penalty are sustainable as p....

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....gure in respect of foreign bunker as per FIFO is rational, legal and proper. In case of liquid cargo, which gravitates to the bottom, it has to be storage from top and withdeawal from bottom i.e. FIFO. As to adoption of the contemporaneous import value under Rule 9 of Valuation Rules read with Section 14 of the Customs Act, 1962, here also they argue irrationally as the bunker is for their consumption, it is not for sale, not unloaded and as the total vessel is unsured, hence elements like freight, handling charges and insurance are not applicable. If this is taken all SCI vessels carrying cargo for their consumption would come up with the same arguments that freight is not applicable. It is not the case whether the goods are for sale, as t....

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....e paid duty by 25.11.98 on B.E. No. 0346 dated 10.11.98 of this estimate and enjoyed the benefit of seven and half months. Hence once these imported goods have been used it should have suffered duty and for their default of artificial deferment, they should not be rewarded with exemption from interest. So interest should accrue as per Section 47(2) of Customs Act, 1962 for the deferment period after giving 7 days from the date of assessment. The case law cited is not relevant. They have not contested about the penalty. Hence I find the Order in Original is in order. It can be seen from the above reproduced findings, that first appellate authority held that appellant had opening stock of furnace oil and diesel oil when they arrived from S....