JAIN MARINE SERVICES Vs. COMMISSIONER OF CUSTOMS, JAMNAGAR

JUDGEMENT

(1.) A bill of entry was filed by the appellants for assessment of fuel and provisions consumed by a tug TOPAZ operated by the appellant during its run for towing a dead vessel SAGAR PRABHAT from Visakhapatnam to Alang. The Superintendent of Customs, Bhavnagar did not agree with the appellants claim that the tug was to be treated as a foreign going vessel and therefore levied and collected duty on the stores amounting to Rs. 10,69,474/ -. On an appeal Commissioner (Appeals) has upheld the assessment and hence the appellants are before this Tribunal.

(2.) HEARD both the sides. Learned counsel, Shri B.L. Narashimhan, on behalf of the appellants submits that the tug was bought from Singapore only to tote! the vessel from Visakhapatnam to Alang and he drew our attention to the definition of foreign going vessel or aircraft under Section 2(21) of Customs Act, 1962 and it is his submission that the tug was a foreign going vessel since it came from Singapore to Alang and touch Visakhapatnam on the way and went back. He submits that the fact that the vessel touched Visakhapatnam on its way to Alang did not make it lose the character of foreign going vessel. The carriage of goods in the run between any port in India and outside India is no criterion at all for the purposes of a decision as to whether a vessel is foreign going vessel or not. He also submitted that the tug TOPAZ was never used for transportation of coastal cargo and therefore customs duty on stores cannot be sustained in law.

(3.) LEARNED DR, on the other hand submits that the vessel towed by the tug as a dead vessel and when the tug started its journey from Visakhapatnam to Alang it was not in the nature of touching the intermediate port but it was an actual journey and a coastal run. Since a dead vessel was towed by TOPAZ, the assessment is in order.