SEDCO FOREX INTERNATIONAL INC Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THIS application is for waiver of penalty of Rs. 5.00 crores imposed on the applicant, and for stay of operation of the order of the Commissioner by which he has ordered confiscation under Clauses (d), (f), (g), (h) and (j) of Section 111 of the Customs Act, 1962 of the drilling rig Trident II with an option to redeem it on payment of fine of Rs. 15.00 crores, in addition to any duty and charges payment under Sub -section (2) of Section 125 of the Act.

(2.) THE applicant and the department were heard on 8.3.2000 and 13.3.2000.

(3.) IN the order, the Commissioner finds that the drilling rig had been imported into various designated areas by notification under Section 7(7) of the Territorial Waters, Continental Shelf, Exclusive Economic Zones Act, 1976 to which the provisions of the Customs Act, 1962 had been made applicable. He finds that these areas are part of India. He finds that the rig was first imported into India in 1988 without a bill of entry being filed for it as required under Section 46 of the Customs Act, 1962 (hereafter referred to as the Act for short). After 29.12.1988, it was once again, after long absence brought into designated area without filing a bill of entry and without payment of duty. It was therefore liable to confiscation and the applicant before us liable to penalty for the reason that despite knowing to the contrary they did not comply with the Customs formalities or paid the duty.