(1.) MAINLY two issues are raised in this petition and they are firstly, whether the petitioners who fraudulently obtained duty free clearance of imported Dracone Barges under section 90 of the Customs Act, 1962 can file an application before the Settlement Commission and contend that even if the duty free clearance under section 90 cannot be sustained, no duty is payable on the said barges in view of Exemption Notification No. 291/ 84-Cus dated 28th December, 1984 and secondly, even if it is held that the customs duty is payable on the said Dracone Barges, in the absence of any statutory power, whether the Settlement Commission is justified in holding that the customs duty is recoverable with interest at the rate of 10% per annum from the date of removal of the barges from the warehouse till payment.
(2.) THE petitioners are engaged in the business of supply of ship stores, spare parts etc. to various parties including Indian Navy and Indian Coast guards. The petitioners had inter alia imported two dracone barges and filed two bills of entries on 18th December, 1992 and 28th January, 1993 for warehousing. The said barges were collapsible barges and form essential part of any oil pollution control package. The said barges are generally carried by rolling up on the Deck of the skimming vessel to the disaster area to collect the oil spillage in the sea. The said barges are also carried in cargo nets below the helicopter and dropped at the centre of the operational area, for collecting the oil spillage in the sea.
(3.) THE petitioners cleared the barges from the warehouse, by filing pink shipping bills showing "ssk Controller of Procurement, Naval Dock, Lion Gate, bombay" as the consignee of the said barges. On the basis of the declaration made on the shipping bills to the effect that the barges are to be supplied to the Indian Navy, the said barges were assessed and allowed to be cleared without payment of duty under section 90 of the Customs Act.