New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (9) TMI 400 - BOMBAY HIGH COURT

2015 (9) TMI 400 - BOMBAY HIGH COURT - TMI - Non-Compliance of Notification No.12 of 2012 Provisional conditional release Drill ship and rig respectively was brought in by petitioners and in order to fulfill obligation under contracts with ONGC Drill ship 'ABAN ICE' and drilling Rig 'ABANIV' were seized by respondent no.3 on belief that though it were exempted from payment of duty under Notification No.12 of 2012 but terms and conditions of this notification are not complied with Held th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e drill ships/ rigs out of India save and except with prior permission of respondent no.3/ respondent no.4 Petitions are disposed of accordingly. - Writ Petition (L) No. 1904 of 2015, Writ Petition (L) No. 1905 of 2015 - Dated:- 3-8-2015 - S. C. Dharmadhikari And G. S. Kulkarni, JJ. For the Appellants : Mr V Sridharan, Senior Adv. With Mr Yogesh Patki & Ms Poorva Garg & Ms Parikshit Barpujari For the Respondent : Mr Pradeep S Jetly With Mr Parag A Vyas JUDGMENT P. C. 1. On 20.7.2015 af .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

how the petitions have been placed today for passing final orders. In these two petitions a drill ship and a rig respectively have been brought in by the petitioners and in order to fulfill the obligation under the contracts with the Oil and Natural Gas Commission. 3. The petitioners were required to file these petitions because the drill ship 'ABAN ICE' and drilling Rig 'ABANIV' were seized on 25th May,2015 by respondent no.3 to these Writ Petitions in exercise of power conferre .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hout undertaken that the drill ship and drilling rig would be utilized only for fulfillment of contractual obligation with ONGC. The petitioners had filed an undertaking in the first petition of their Managing Director, Reji Abraham. They have stated before us that the provisional release of this drill ship was sought but the third respondent addressed a letter to ONGC with a copy marked to the first petitioner clarifying that the drill ship 'ABAN ICE' can continue in operations at the s .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ced to the Customs as and when required. 7. The undertaking filed in this Court on 2.7.2015 emphasized as to how the rig is expected to be in India under the Contract dated 19.9.2013 for further period of one year and may be deployed as per the directions of ONGC. 8. The requirement of ONGC would control the movement of rig as and when drilling operations are undertaken by the ONGC which is a Government of India enterprise and as per the instructions of that enterprise the drill ship would be mo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Now that affidavit has also been placed before us by Mr.Jetly and which clarifies that as provided under the Notification No.12 of 2012 of the Customs dated 17.3.2012, and which is in force till today under Serial No.359 under Table List 13 and condition No.44 an Essentiality Certificate was issued in favour of ONGC on 4.11.2014. The ONGC which is an operator of the block applied for no objection certificate for addition of blocks in this Essentiality Certificate and that correspondence is also .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lations are also referred. 10. In the above circumstances, we are of the opinion that interest of justice would be served by disposing of these petitions as the facts and circumstances in both the petitions are same barring the dates of contracts and change in the name of the drill ship, nothing is indicated which would not enable us to dispose of these petitions by a common order. The petitions can thus be disposed of by accepting the undertakings of the petitioners given to this Court. We also .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and except with the prior permission of respondent no.3/ respondent no.4. We also accept the undertaking of the petitioners that rigs will operate till 31.12.2016 in India. It is an undertaking given to this Court and accepted as such. 11. We clarify that the directions are without prejudice to the rights and contentions of both sides. In the event the Customs is desirous of initiating any proceedings, it may do so in accordance with law. 12. We clarify that our order passed in these petitions .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hom the obligation to pay Customs duty falls and who claims to be entitled to the benefit of a conditional Exemption Notification issued under Section 25(1) of the Customs Act,1962, the Hon'ble Supreme Court held as under: - "23. Both the importers are licensees. Indisputably, they were entitled to the benefit of the exemption notification subject, of course, to the condition that they would produce the essentiality certificate granted by the Directorate General of Hydrocarbons at the t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

granted in favour of ONGC refers to the notification, the relevant certificate number of the table, list 11 and condition number 34 or 36, as the case may be, of the notification. It even refers to the serial number of the consignments. The serial number of the tapes had also been mentioned therein. Except for the purpose of grant of benefits under the said exemption notification, the said essentiality certificate would not serve any other purpose whatsoever. 25. Construction of an eligibility c .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y be specified therein. Such conditions are required to be fulfilled before or after clearance as may be specified. Such exemption would be in relation to the goods of specified description from the whole or any part of duty or customs leviable thereon. 26. Serial Nos. 182 and 184 of the notification refer to the goods falling under Chapter 84 and specified in List 11 required in connection with petroleum operations undertaken by a licensee. 27. ONGC is a licensee for exploration of petroleum pr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

oleum and Natural Gas that the imported goods are required for petroleum operation referred to in clause (a) of condition No. 34 and under the licence referred to herein. 28. The Directorate General of Hydrocarbons is under the Ministry of Petroleum and Natural Gas of the Government of India. The functions performed by it are public functions. The notification never contemplated that a public functionary, having regard to the importance of the subject matter and in particular when such importati .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e that when a public functionary is required to discharge its public functions within a time specified therefor, the same would be construed to be directory in nature. [See P.T. Rajan Vs. T.P.M. Sahir and Others, (2003) 8 SCC 498 and Punjab State Electricity Board Ltd. Vs. Zora Singh and Others, (2005) 6 SCC 776]. 29. Both the Customs Department and Ministry of Petroleum and Natural Gas are departments of the Central Government. The substantive provisions which were required to be complied with .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n 25 as regard time when such certificate is to be produced would, thus, mean those which were within the control and power of the importer. If it is not within the power and control of the importer and depends upon the acts of other public functionaries, noncompliance of such condition, subject to just exception cannot be held to be a condition precedent which would disable it from obtaining the benefit therefrom for all times to come. 31. It is no doubt true that the fiscal liability has to be .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ect to compliance of certain conditions, such conditions may be fulfilled at a later stage, namely, at the stage of final clearance or final assessment. 33. The question may be considered from another angle. The Directorate General of Hydrocarbons was indisputably aware about the existence of such exemption notification. The certificate in accordance with law has not only been granted, the same expressly refers to the exemption notification, the entry of the table, the relevant clauses applicabl .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

us, was not to end in futility. 34. In almost a similar situation, the question came up before this Court in Commissioner of Central Excise Vs. M.P.V. & Engg. Industries [2003 (153) ELT 485] (wherein one of us, B.P. Singh, J. was a member) which was answered stating that an assessee although was otherwise entitled to obtain the benefit of an exemption certificate, the same should not ordinarily be denied to it because of any administrative delay over which he had no say in the following word .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version