TMI Blog2011 (4) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for petroleum operations since last four months is not in dispute - when the vessel is provisionally released, the question of confiscating the vessel under the provisions of the Customs Act, even before adjudication does not arise - Accordingly, the seizure memo dated 7-4-2011 is quashed and set aside and the Customs Authorities are directed to release the vessel forthwith - Decided in favour of the assessee - 2959 OF 2011 - - - Dated:- 21-4-2011 - J.P. Devadhar, A.A. Sayed, JJ. Mr.Prakash Shah i/by PDS Legal for the petitioner. Mr.Pradeep S. Jetly for the respondent. JUDGMENT : (Per J.P. Devadhar, J.) 1. Rule. Rule is made returnable forthwith. By consent, the petition is taken u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er No.2 is the sub contractor of petitioner No.1 and that the vessel in question is to be used for the petroleum project was filed before the Customs Authorities. 6. As the vessel in question was not released, Writ Petition No.10240 of 2010 was filed, wherein an order was passed on 23 -12 2010 to the effect that the Customs would allow provisional release of the vessel in question. Accordingly, the vessel was released provisionally on 26 12-2010 on furnishing a bank guarantee for Rs.15 crores, cash payment of Rs.5 crores and a Bond for the full value of the vessel. It is not in dispute that on provisional release, the vessel is used for the petroleum project as per the contract between the ONGC and petitioner No.1. 7. By the imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... required for petroleum project. If the vessel is required for the petroleum project, then issuance of the essentiality certificate by DG, Hydrocarbons could not be faulted. Secondly, the DG, Hydrocarbons could not have cancelled the essentiality certificate without hearing the petitioners and without considering the case of the petitioners. Thirdly, before the Customs Authorities the ONGC had filed an affidavit / undertaking to the effect that the vessel would be used for petroleum project and in fact the vessel has been used for the petroleum project since the date of provisional release. Fourthly, as per Notification dated 1 3-2002, the vessel in question could be cleared at nil rate of d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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