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2014 (10) TMI 270 - AT - CustomsImport of pre-casted line pipes - The said pipes were required to be installed for water injection to augment oil production. - revenue of the view that even if part of the goods remained outside India since use of the goods is in India, has held that the goods are liable to import duty on the entire length - Confiscation under Sections 111(f), 111(l) and 111(m) - Penalty u/s 112(a) and (b) - Held that:- as the goods were being taken to a territory which would be deemed to be a part of the territory of India though the goods have left the territorial waters, the same would be exigible to levy of duty when they are taken and consumed within the deemed territory of India. There would be no customs duty or any other duty levied while the goods are in transit to the deemed territory of India by any other country although they have gone out of the territorial waters of India. it is clear that the Customs Act, 1962 and the Customs Tariff act, 1975 extends to the Continental Shelf Life and Exclusive Economic Zone of India as notified in the Notifications issued under the Maritime Zone act, 1976 and merely because the goods are the pipelines passing through a non-designated area, it does not mean that they cannot be subject to levy of customs duty. Since the goods are not in transit to any other country but are in transit to the deemed territory of India, they are liable to customs duty in India and we hold accordingly. There are many situations where the goods are used/consumed in India even though they may not be physically present in India. Consider the case of a telecommunication satellite which beams communication signals for viewing/hearing in India. The satellite is physically situated in the outer space but its use is in India and when such satellites are brought to India for launching in outer space customs duty will apply. Similarly, in the case of ships or aircrafts brought to India for registration in India, they are subjected to Customs duties even though most of the time, they may not be physically present in India but might be plying outside India. Therefore, in the present case, since the pipe lines are used/consumed in India, they are liable to customs duty and we hold accordingly - Decided in favour of assessee.
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