NOBLE ASSET CO. LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THESE appeals are emanating out of a common Order in original No.CCP/KPM/ADJN/R&I/2/2005 dated 23rd March 2005 of the Commissioner of Customs preventive), New Custom House, Mumbai, in relation to an offshore second hand rig named 'Essar Noble Jimmy Puckett', in which the following liabilities have been arrived on various appellants, before us:

(2.) NARESH Kumar, Director, M/s. Exploration and Industries Limited. Penalty of Rs. 1,00,000/ - Under Section 112 and/or Under Section 114 of Customs Act, 1962. C/608/05 Mr. R.A. Agrawal, Director, M/s. Exploration and Industries Limited. Penalty of Rs. 2,00,000/ - Under Section 112 and/or Under Section 114 of Customs Act, 1962. C/632/05 M/s. Modest Shipping Agency Private Limited (hereinafter referred to as Modest Shipping). Penalty of Rs. 5,00,000/ - Under Section 112 and/or Under Section 114 of Customs Act, 1962. C/631/05 ShriKishoreGambani, Director, M/s. Modest Shipping Agency Private Limited. Penany of Rs. 2,00,000/ - Under Section 112 and/or Under Section 114 of Customs Act, 1962. C/634/05 Essar Oil Limited [hereinafter referred to as Essar]. (i) Customs duty of Rs. 7,89,53,162/ - was confirmed under Section 12 read with Section 125(2) of the Customs Act, 1962, for import of rig (Essar Explorer) in 1992. (ii) Penalty of Rs. 2,00,00,000/ - under Section 112 and or under Section 114, of Customs Act, 1962.     C/635/05 Mr. S.R. Agrawal, Chief Executive, Drilling Division, Essar Oil Lid. Penalty of Rs. 25,00,000/ - Under Section 112 and/or Under Section 114 of Customs Act, 1962. C/637/05 Mr. A.D. Amladi, General Manager (Commercial), Essar Oil Ltd. Penalty of Rs. 1,00,000/ - Under Section112 and/or Under Section 114 of Customs Act, 1962. C/638/05 Mr.N. Ramesh, Chief Executive, Engineering Division, Essar Oil Ltd. Penalty of Rs. 2,00,000/ - Under Section112 and/or Under Section 114 of Customs Act, 1962. C/656/05 M/s. J.M. Baxi and Co. Penalty of Rs. 2,00,000/ -u/s.112 and/or Under Section 114 of Customs Act, 1962. C/655/05 Mr. NareshKotak, Partner J.M. Baxi and Co. Penalty of Rs. 1,00,000/ - Under Section 112 and/or Under Section114 of Customs Act, 1962. C/659/05 Mr. Deepinder Singh Bharara, General Manager, J.M. Baxi and Co. Penalty of Rs. 1,00,000/ - Under Section 12 and/or Under Section 114 of Customs Act, 1962. C/654/05 M/scary Offshore Services Private Limited. Penalty of Rs. 2,00,000/ - Under Section112 and/or Under Section 114 of Customs Act, 1962. C/ 657/ 05 Mr. Suvarna, Senior Executive, M/s. Arya Offshore Services Private Limited. Penalty of Rs. 1,00,000/ - Under Section 112 and/or Under Section114 of Customs Act, 1962. C/658/05 Mr. Siddharth Roy, Chief Executive Officer, M/s. Arya Offshore Services Private Limited. Penalty of Rs. 1,00,000/ - Under Section 112 and/or Under Section114 of Customs Act, 1962. 2. The factual background briefly stated necessary for deciding the issues, is as follows:

(3.) AFTER seizure of the rig by the officers of the Preventive wing of the custom House, appellants mentioned above were issued show cause notice F. No. SE/INT/INV/28/2001/S/14 -4/38/ 2001 dated 18.7.2003 by the Commissioner of Customs (Preventive). The said notice was adjudicated by the Commissioner of Customs (Preventive), who upheld the allegations leveled and confirmed a demand for customs duty on Essar and Noble besides holding the rig liable to confiscation and also imposing penalties. These appeals challenge the correctness of the order passed by the respondent on several counts, which we will deal in the subsequent paragraphs. The matter was argued at great length by counsels Appearing on behalf of the appellant's and the special -counsel appointed by the revenue. Broadly speaking the submissions made by the appellant and the revenue are as under: