CGG MARINE Vs. COMMISSIONER OF CUS., VISAKHAPATNAM

JUDGEMENT

(1.) THE appellant is required to pre -deposit Rs. 45,03,484/ - being the duty claimed by revenue with regard to the marine gas oil which was carried in the vessel. The Notification No. 21/2002 dated 1 -3 -2002 in Sl. No. 217 and Annexure 24 exempts all goods that is sub -assemblies, tools, accessories, stores, spares, materials, supplies consumables for running, repair or maintenance of goods specified in that List 12 of the Annexure. Government has exempted these goods carried on in the vessel. The appellants are sub -contractors appointed by ONGC for undertaking oil exploration. The appellants supply marine gas oil to ONGC. Revenue is of the view that this particular item does satisfy the certificate issued by the ONGC. The Essentiality Certificate was issued for import of Marine Gas Oil, whereas the goods imported has the characteristics of Light Diesel Oil (LDO) as per the test report. However, there is no denial of the fact that the item is consumables and is covered by the Sl. No. referred to in the Notification. Therefore, the appellants contest the levy of duty on the ground that there is mis -application of Notification as well as entire proceedings are not legal and proper.

(2.) HEARD both sides in the matter.

(3.) WE have gone through the terms of the Notification. The Notification exempts all goods described in Sl. No. 217 which are brought in the vessel. The vessel is under contract to ONGC. Mere mis -description in the Essentiality Certificate will not entail revenue to confirm demands so long as all the items are covered in the Notification. There is no specific provision in the Notification for showing the specifications of the consumables in the Essentiality Certificate. Appellants have a very strong case on merits and they are likely to succeed in the matter. Therefore, the stay application is allowed unconditionally by granting waiver of pre -deposit and staying its recovery. Appeal to come up in its turn.