CHENNAI MARINE TRADING PVT. LTD. Vs. CC

JUDGEMENT

(1.) THIS appeal is filed by the appellant against the Order -in -appeal dated 7.7.2005.

(2.) THE relevant facts of the case, in brief, are that the appellant filed an ex -bond bill of entry No. 780497 dated 31.3.2005 for the clearance of the goods declared as "Freon 22 (Ship stores)' from Dubai, United Arab Emirates. A show cause notice dated 7.4.2005 was issued proposing confiscation of goods under Section 111(d) and imposing penalty under Section 112(a) of the Customs Act, 1962 as the goods are restricted for import. The adjudicating authority confiscated the goods and imposed redemption fine of Rs. 10,000/ -and also imposed penalty of Rs. 2,000/ - on the appellant. In the appeal, the Commissioner (Appeals) upheld the adjudication order.

(3.) THE learned advocate on behalf of the appellant submits that the appeal is basically relating to importability of Freon 22 as ship stores and supplied to vessels of the Shipping Corporation of India and in turn supplied to coastal vessels. He submits that Clause 3(2)(b) of the Foreign Trade (Exemption from application of Rules for certain cases) Order, 1993 provides that the goods imported for use as ship stores were free of any restriction/prohibition as provided under Clause 3(d). He submits that Clause (2)(b) of Order, 1993 indicates that "outgoing vessels" cover also "coastal vessels". In this connection, he relied upon the decision of the Hon'ble Supreme Court in the case of Union of India v. V.M. Salgaocar and Bros. (P) Ltd. .