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2017 (8) TMI 55 - AT - CustomsConfiscation - penalty - import of Fishing Trawlers - benefit of N/N. 21/2002-Cus. dt.1.3.2002 as amended - whether the disputed goods are in the nature of ship stores or otherwise and in consequence, whether customs duty is required to be paid on the same? - Held that: - There can also be no dispute that once the fishing trawler complete its shore modalities and goes to the high seas for their intended fishing operations, they will have to be treated as foreign going vessel in terms of Section 2 (21) of the Customs Act, 1962 reproduced in para 4.6 above. Even the CBEC Customs Manual of Instructions, in Chapter 2, Para-15 thereof clarifies that consumables can remain on board without payment of duty - CBEC vide circular No.89/88/CX.6 dt. 30.12.1988 has further clarified that stores for consumption on board a vessel would cover stores, both consumable and non-consumable, meant for use in a ship. There is no proof or allegation whatsoever that impugned ship bait and other consumables were not used for high seas fishing operations or that they were illicitly removed into the DTA. Especially, when these trawlers themselves have been subject to ‘Nil’ rate of duty and it is not in dispute that they have come to Indian Customs Waters only for the purpose of completing import formalities and also registering them as fishing vessels, only to go back to high seas for deep sea fishing for export, insistence of payment of duty on the ship stores is definitely not in sync with the provisions for foreign going vessels and certainly run counter to the avowed intent of the government to promote exports. Appeal dismissed - decided against appellant.
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