COLLECTOR OF CUSTOMS CALCUTTA Vs. SUN INDUSTRIES

JUDGEMENT

(1.) -This appeal under S. 130-E (b) of the Customs Act, 1962 (hereinafter called 'the Act') is directed against the order dated 14/07/1987 of the Customs Excise and Gold (Control) Appellate tribunal (hereinafter called 'cegat'). By the impugned order the tribunal allowed the appeal of the respondent.

(2.) On 7/06/1980 the respondent M/s Sun Industries of Calcutta had shipped 6,000. 00 bundles containing 1,00,000. 00 sets of plywood panels for tea chests on the M. V. Mohur Gang. The shipment of the said goods was intended for delivery at Colombo under claim for drawback on the said goods under S. 75 of the Act against shipping bill. On 20/06/1980 on proceeding to the voyage aftershipment of the goods, the ship developed engine trouble on the way and returned back and ran aground in Indian territorial waters at the port of Paradeep. The fitting stores and cargo vessel had been salvaged into India under the supervision of Port Trust, Paradeep. The respondent thereafter applied for drawback under S. 75 of the Act. By an order dated 25/10/1986, the Assistant Collector of Customs rejected the claim for drawback on the said goods under S. 75 of the Act read with S. 2 (18 and Rule 2 (c) of the Customs and central Excise Duties Drawback Rules, 1971. Being dissatisfied the respondent appealed to the Appellate Collector of Customs, Calcutta. By the order dated 12/02/1981 the Appellate Collector rejected the appeal holding that the ship ran aground in territorial waters of India, therefore, the said goods could not be deemed to have been exported. Dissatisfied with the said order the respondent preferred a revision under S. 131 of the Act. The revision petition was thereafter transferred to the Customs Excise and Gold (Control) Appellate tribunal. New Delhi.

(3.) S. 75 of the Act provides drawback on imported materials used in the manufacture of goods which are exported. The said S. reads as follows: