HAL OFFSHORE LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THERE are seven appeals directed against Order -in -Original Nos. 26/2011/CAC/CC(I)/SHH/Gr.VB and 27/2011/CAC/CC(I)/SHH/Gr.VB both dated March 31, 2011 passed by the Commissioner of Customs (Imports), New Customs House, Mumbai. As the issue involved in all these appeals are common, they are taken up together for consideration and disposal.

(2.) IN Appeal Nos. C/445 to 448/2011, the importer is M/s. HAL Offshore imported a multi -purpose support vessel (MSV) "HAL -Anant" vide bill of entry No. 806570, dated November 20, 2007 declaring the goods as "one self -propelled second -hand supply vessel M.V. Hal Anant (Ex -M.V. Dulam Providence) along with all its standard equipment and accessories" with an assessable value of Rs. 124,80,25,488 seeking classification under Customs Tariff Heading 8901 90 00 with applicable duty at nil rate. The goods after examination by the customs were classified under Customs Tariff Heading 8901 90 00 and assessed accordingly. In Appeal Nos. C/465 to 467/11 the importer is M/s. Great Offshore Ltd. imported a multi -purpose support vessel (MSV) "HAL Anant" vide bill of entry No. 791345, dated September 7, 2007 declaring the goods as "second -hand supply vessel Malaviya thirty six (Ex -Skandi Bergen)" with an assessable value of Rs. 215,74,74,030 seeking classification under Customs Tariff Heading 8901 90 00 with applicable duty at nil rate. The goods after examination by the customs were classified under Customs Tariff Heading 8901 90 00 and assessed accordingly.

(3.) ON the basis of the investigation conducted and evidence unearthed, show -cause notices were issued to the appellant vide the notices dated May 21, 2010 (HAL Offshore) and notice dated June 25, 2010 (Great Offshore). These notices proposed to reclassify the vessels under Customs Tariff Heading 8905 and demand differential duty of Rs. 15,50,78,867 in the case of M/s. HAL Offshore (on account of both reclassification and also redetermination of assessable value) and differential duty of Rs. 20,18,53,270 in the case of M/s. Great Offshore on account of reclassification, by invoking the extended period under section 28(1) of the Customs Act, 1962. The notices also proposed to recover interest on the differential duty liability under section 28AB. There were also proposals for confiscation of the goods under section 111(m) ibid and imposition of penalties under section 112(a)/114A on the importer and under section 112(a) on the managing director/president and other officials connected with the import transaction of the importing firms.