COMMISSIONER OF CUSTOMS IMPORTS Vs. PRIDE FORAMER

JUDGEMENT

(1.) M/s.Pride Foramer-the respondent imported the rig "pride Pennsylavania" into India in the month of March, 1999 to carry out a contract obtained from M/s.Oil & Natural Gas Corporation Limited (for short, ONGC ). M/s.J.M.Baxi-a clearing house agent filed the Bill of Entry on behalf of m/s.Pride Foramer for the clearance of the said rig for home consumption subject to re-export. The value of the rig Pride Pennsylvania was declared as US $ 17,682,690 in the Bill of Entry. The assessing officer accepted the invoice value on the basis of valuation certificate issued by M/s.Bureau Veritas. Rs.34,48,94,785/- was paid as customs duty. On the basis of intelligence gathered by the officer of Special Intelligence and Investigation Branch (Import), the investigation commenced and based on the preliminary investigation, the rig "pride Pennsylvania" was placed under Seizure on 26.09.2001. M/s.Pride Foramer on 27th September, 2001 requested the Commissioner to allow them to continue the operations as stopping of operations could result in serious consequences. In response thereto the Commissioner of Customs (Import) granted provisional release of the rig pending investigations and adjudication on submission of bond of Rs.50 crores backed by a cash deposit of Rs. 10 crores. Being aggrieved, M/s.Pride Foramer filed a writ petition before this Court under Article 226 of the Constitution of India. On 3rd October, 2001, the Division Bench of this Court disposed of the said writ petition holding that there was no ground for interference in the order directing M/s.Pride Foramer to furnish a bond of Rs.50 crores backed by a cash deposit of Rs. 10 crores.

(2.) M/s.Pride Foramer deposited a sum of Rs.10 crores and also executed a bond of Rs.50 crores on 31st October, 2001 and the rig was provisionally released. The notice was issued on 8th January, 2002 to M/s.Pride Foramer to explain and show cause as to why (a) the Rig, Pride Pennsylvania value at Rs.1,96,69,50,295/- be not confiscated under Section 111(m) of the Customs, Act, 1962; (b) the differential duty of customs amounting to Rs.52,13,50,125/- be not recovered under proviso to section 28 of the Customs Act; (c) penalty be not imposed on them under section 114A of the Customs Act, 1962 and (d) interest be not charged under section 28 AB of the Customs Act, 1962.

(3.) The notice was also issued to Mr.Jean Paul Rabier, the Logistic manager of M/s.Pride Foramer and M/s.Bureau Veritas, asking them to explain and show cause as to why the penalty be not imposed upon them under section 112(a) of the Customs Act, 1962.