TaxTMI 
TaxTMI 
2008 (12) TMI 113
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....nd provide required services accordingly. 3. The Government of India under the 'New Exploration Licensing Policy', hereinafter referred to as "NELP" has awarded certain blocks of land/sea to certain companies for exploration of natural resources. The companies awarded with the above contractors are permitted to explore and do petroleum operations under a contract signed with the Government of India. As per the conditional exemption given under Sl. No. 217 of Notification No. 21/2002-Cus., dated 1-3-2002 as amended hereinafter referred to as "Notification", 'Goods specified in List 12 (Appended to the Notification) required in connection with petroleum operations undertaken under specified contracts under the NELP are exempted from the whole of the Customs and Additional Duties. Para (b)(i) of the Condition No. 32 of the above Notification pertaining to the above exemption specifies that the importer has to produce to the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, at the time of importation, a certificate from a duly authorized officer of the Directorate General of Hydro Carbons, hereinafter referred to as 'DGHC' in the Ministry of Pe....
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.... the oil drill rigs were imported was an unintentional one. It was the submission before the Adjudicating Authority that the said items are also covered under Sl. No. 217 of Notification No. 21/2002-Cus. dated 1-3-2002 as amended and as such, there was no reason for them to not to declare the said quantities available on drill rig They also took an alternative plea that the amount of the Customs Duty and the interest thereof having been deposited with the authorities before the issuance of the show cause notice, provisions of Section 28(2B) of the Customs Act, 1962 would come into play and there was no need to issue any show cause notice. The Adjudicating Authority after considering the contentions raised by all the appellants before him passed the following order. Order of OIO No. 2/07 (VR) dated 11-1-2007 : (i) I demand an amount of Rs. 17,93,968/- (Rupees seventeen lakhs ninety-three thousand nine hundred sixty-eight only) towards Customs Duties under first proviso to Section 28(1) of the Customs Act, 1962 from M/s. Transocean Offshore Deepwater Drilling Inc., Mumbai. (ii) I also demand interest from M/s. Transocean Offshore Deepwater Drilling Inc., Mumbai at applicable....
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.... of Fuel Oil (HSD), 80840.465 Litres of Lubricating Oils, 1324.866 Litres of Heli Fuel Oil, totally valued at Rs. 36,95,171/- (Rupees thirty-six lakhs ninety-five thousand one hundred and seventy-one only) which were imported by them without declaring to the customs and without filing Bills of Entry. However, as the said goods are not physically available, I impose a fine of Rs. 3,70,000/- (Rupees three lakhs seventy thousand only) in lieu of confiscation of the said goods, under Section 125(1) of the Customs Act, 1962. (v) I impose a penalty of Rs. 19,77,980/- (Rupees nineteen lakhs seventy-seven thousand nine hundred and eighty only) on M/s. Transocean Discoverer 534 LLC, Mumbai, under Section 114A of the Customs Act, 1962 for the commissions and omissions detailed above under Section 111(1) of the Customs Act, 1962. (vi) I impose a penalty of Rs. 25,000/- (Rupees twenty-five thousand only) on Shri Manojit Chaliha, District Procurement and Logistics Manager, M/s. Transocean Discoverer 534 LLC, Mumbai under Section 112(a) of Customs Act, 1962. (vii) I impose a penalty of Rs. 25,000/- (Rupees twenty-five thousand only) on Shri Vinay Sharma, Assistant Vice-President (Import....
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....uld be set aside. 8. The learned SDR, who on the other hand argued that knowingly the appellant-companies did not declare these items in the Bills of Entry. It is his submission that it was for the appellant-companies to be more vigilant and careful to enter these items in the essentiality certificate. Having not done so, the appellants are liable to pay the duty and the interest thereof. It is his submission that since the confirmation of the demand and interest is not challenged by the appellant-companies, the imposition of penalties under various provisions of Customs Act are correct and need not be interfered with. As regards the confiscation of the goods, it is his submission that the confiscation is also correct, as the goods were liable for confiscation. 9. We have considered the submissions made at length by both sides and perused the records and written submissions made. 9.2 The appellant-companies have categorically stated that they are not challenging the recovery of the duty and interest, on the Heli Fuel Oil, Lubricating Oil and Fuel Oil, but, are contesting the penalties imposed on the Company. The other appellants are also challenging the personal penalties ....