JAGSON INTERNATIONAL LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) This is an application by M/s. Jagson International Limited for waiver of pre -deposit of Customs duty amounting to Rs. 13,30,22,640/ - and penalty of Rs. 2 crores.

(2.) Shri Ravindra Narain, learned Senior Advocate, submitted that the Applicants imported a second hand Jack up Rig Deepsea Matdrill alongwith leg sections and anchor and filed Bill of Entry on 28 -4 -93 classifying the goods under sub -heading 8905.90 of the First Schedule to the Customs Tariff Act and claiming exemption from duty under Notification No. 133/87 -Cus., that as the Customs Department did not allow the clearance under the classification claimed by them and as the impugned goods were required urgently, they approached, the Civil Court in Delhi; that the Court of Commercial Sub -Judge, Delhi vide Order dated 24 -8 -93 restrained the Customs Authorities from causing obstruction in the movement and operation of the impugned goods to the ONGC sites till the disposal of the Suit binding them to pay duty, if any, under sub -heading 8905.90; that accordingly the Port Trust Authorities issued a letter 9 -10 -93 permitting the impugned goods to leave away from the Port Trust. He mentioned that the Department issued a show cause notice dated 27 -5 -95 and subsequently the Commissioner has, under the impugned order, classified the impugned goods under sub -heading 8905.20 of the Customs Tariff, confirmed the demand of duty, imposed penalty and confiscated the goods with an option to redeem the same on payment of fine.

(3.) The learned Senior Counsel, further, submitted that Notification No. 196/86 -Cus., dated 30 -6 -89 exempts partially "Off -shore drilling Rigs including Jack/up Drilling, Drilling Rigs, Drill ships, semi -submersible Rigs subject to the production of, at the time of clearance, a certificate issued by the Member Secretary of the Empowered Committee on the Indigenisation of the Oil Field Equipments and Services of the Ministry of Petroleum and Natural Gas; that they had produced the said certificate which had not been accepted by the Commissioner on the ground that the same was not produced at the time of clearance of goods; that it has been held in the case of SKF Bearings India Ltd. v. C.C., Bombay, 1999 (109) E.L.T. 774 (T), that production of certificate is not a sine quo non at the time of clearance of goods; production of the certificate is only procedural formality and it can be produced at any stage by the importer. Reliance has also been placed on the decision in the case of Jagson International Ltd. v. C.C., Vizag, 2001 (132) E.L.T. 247 (T). The learned Senior Counsel also mentioned that after availing of benefit of this Notification, their duty liability, if any, would be Rs. 3 crores or so.