DEVRAJ M. SALIAN Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THERE are six appeals arising out of Order -in -Original No. 21/2013/CAC/CC(I)/AB dated 15/02/2013 & 32/2013 dated 07/03/2013 passed by the Commissioner of Customs (Imports), Mumbai. In the impugned orders, the learned adjudicating authority has classified the Tug/Supply Vessels "Sea Cheetah" and "Sea Venture" imported by the appellant, M/s. Hind Offshore Pvt. Ltd. vide Bills of Entry No. 891148 dated 20/04/2009 and 867537 dated 23/10/2008, respectively, under CTH 8904 and confirmed differential duty demands of Rs. 9,08,68,858.87 and Rs. 62,88,264/ - respectively by invoking the extended period of time. Further he has imposed the following penalties.

(2.) THE facts relating to the case are briefly as follows:

(3.) THE learned Special Consultant appearing for the Revenue was asked to argue on the time bar aspect pleaded by the appellant before commencing arguments on merits, inasmuch as the vessels had been examined by the Customs Officers before they were assessed and therefore, there could not have been any suppression on the part of the appellant. The learned Consultant submits that in the case of "Sea Cheetah", the demands have been made under Section 28 and therefore, the question of time limit would arise whereas in the case of "Sea Venture", the vessel was seized and provisionally released and subsequently, the vessel was held liable to confiscation under Section 111(m). On confiscation, option to pay fine in lieu of confiscation was granted under Section 125(1). In a case where goods are confiscated and allowed to be redeemed, the person who is liable to pay fine is also liable to discharge the differential duty liability. Since no time limit has been prescribed for demand of duty under Section 125(1), the differential duty demand in the case of "Sea Venture" would sustain. Even in respect of "Sea Cheetah", it is his contention that the importer appellant had misdeclared the goods and had not furnished the full details and therefore, invocation of extended period of time is justified.