TaxTMI 
TaxTMI 
2026 (8) TMI 936
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....e in lieu of confiscation Penalty imposed 1 23/DC/O&A/2019- 20 20.06.2019 JMN-CUSM-000-APP259to285-19-20 dated 21.02.2020 MT Olympic Sponsor Rs.7,33,968/- Rs.11,000/- Rs.5000/- 2 28/DC/O&A/2019- 20 20.06.2019 JMN-CUSM-000-APP259to285-19-20 dated 21.02.2020 MT Tinos Warrior Rs.46,80,661/- Rs.68,000/- Rs.5000/- 3 30/DC/O&A/2019- 20 20.06.2019 JMN-CUSM-000-APP259to285-19-20 dated 21.02.2020 MT Tinos Warrior Rs.19,90,709/- Rs.1,87,600/- Rs.5,000/- 4 27/DC/O&A/201920 20.06.2019 JMN-CUSM-000-APP259to285-19-20 dated 21.02.2020 MT Green Warrior Rs.17,83,486/- Rs.70,700/- Rs.5,000/- 5 25/DC/O&A/201920 20.06.2019 JMN-CUSM-000-APP259to285-19-20 dated 21.02.2020 MT Asahi Princess Rs.5,74,777/- Rs.35,000/- Rs.5,000/- 6 31/DC/O&A/201920 20.06.2019 JMN-CUSM-000-APP259to285-19-20 dated 21.02.2020 MT Explorer Rs.19,81859/- Rs.45,000/- Rs.5,000/- 7 34/DC/O&A/201920 20.06.2019 JMN-CUSM-000-APP259to285-19-20 dated 21.02.2020 MT Jupiter Sun Rs.7,40,731/- Rs.60,500/- Rs.5,000/- 8 32/DC/O&A/201920 20.06.2019 JMN-CUSM-000-APP259to285-19-20 dated 21.....
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....600/- Rs.5,000/- 24 64/DC/O&A/201920 Dated 09.09.2019 JMN-CUSM-000-APP259to285-19-20 dated 21.02.2020 MT BW Kronborg Rs.34,54,254/- Rs.1,22,000/- Rs.5,000/- 25 69/DC/O&A/201920 Dated 09.09.2019 JMN-CUSM-000-APP259to285-19-20 dated 21.02.2020 MT Dawn Kanchipuram Rs.44,20,889/- Rs.89,700/- Rs.5,000/- 26 68/DC/O&A/201920 Dated 09.09.2019 JMN-CUSM-000-APP259to285-19-20 dated 21.02.2020 MT Barbarosa Rs.36,56,123/- Rs.82,300/- Rs.5,000/- 27 67/DC/O&A/201920 Dated 09.09.2019 JMN-CUSM-000-APP259to285-19-20 dated 21.02.2020 MT Margarita Rs.23,69,923/- Rs.38,800/- Rs.5,000/ 2.1 The facts of the cases are that the appellant filed certain Bills of Entry on behalf of the Masters of the above vessels for conversion of the vessels from foreign run to coastal run and paid Customs duties for the approximate quantities of foreign origin bunkers and provisions likely to be consumed during coastal run of the vessels, in terms of instructions issued vide Board Circular No. 58/1997 dated 06.11.1997 alongwith bonds for provisional assessments of the Bills of Entry. During scrutiny for final assessment of the Bills o....
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...., is for the consumption of the crew during its coastal run and the ship stores is not for trading. Further, the customs duty at the appropriate rate, on the quantity of ship stores which would be consumed by the crew during the coastal run, is already paid at the time of filing of the provisional Bill of Entry for the same. Whatever stores remain in the ship /vessel, upon reversion of the vessel to foreign run will remain in the vessel itself and at no point of time would be unloaded from the vessel. As the ship stores for the internal consumption of the crew of the vessel is duty paid and is not brought out of the vessel to the shore, the DGFT Rules and Regulations would not apply to them. The appellant has relied on the order passed by the CESTAT, Ahmedabad in the case of A.G. Enterprise vs. Commissioner of Customs (Preventive), Jamnagar reported at 2014 (308) ELT 418 (Tri.-Ahmd.) in which it has been held that the above mentioned clarification dated 26.06.2013 issued by the DGFT would be binding on the Customs and that the ship stores should be treated as a part of the vessel and that the DGFT restrictions would not apply to it. In the said order, it has also been observed that....
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....assals and not Imported for trade. They have informed that HSD/LDO are required for running the generators of the ship and is stored in the fuel tanks. Since the consumption of fuel is very high a minimum quantity is required to be maintained in the tanks. This is also required to avoid any eventuality of break-down during the transit. Secondly, the fuel is not imported by them but is coming along with the vessel. Thirdly, necessary duties are paid by them and they have no intention of trading the fuels but only keeping the balance fuel. Lastly, lack of clarity is resulting in customer penalizing/blacklisting them. Therefore, they have requested to clarify that the fuels Incidental to the ship/vessels may be treated as part of the vessel and classified under heading 89.08. 3. We had obtained the details of number of ships Imported for break up and the total quantity of fuels Imported during the last 2 years. It is observed that not only the volume of fuels Imported is very small compared to the total imports into the country, but the duty collected by the customs alongwith penalty is 6-7 crores only, which approximately comes Rs. 1,35,000/- (Rs 400 ships per year)." ....