TMI Blog2007 (8) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... Dinesh R. Prabhu, M/s. Bharat Marine Company, Chennai, CHA and M/s. Metro Marine Services (P) Ltd., Chennai, C F agents. 2. The facts of the case are that a consignment of marine paints and thinners was imported by M/s. Jaisu Shipping Co. Pvt. Ltd., in April 1999 per vessel M.V. TIGER PEARL V-700 with the master of the vessel M.T. AL NIMS as consignee. M/s. Bharat Marine Company, Chennai, CHA filed an application on 23/04/99 on behalf of the importer for transshipment of the consignment to Kandla where the vessel M.T. AL NIMS was berthed. The transshipment application indicated that the goods were meant for consumption on board a vessel on foreign run. On receipt of the transshipment cargo by the Assistant Commissioner (Preventive), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... surrendered the consignment when it was detected in investigation that the documents had been manipulated to evade the appropriate import duty. After issuing show cause notices and after hearing M/s. Jaisu Shipping Co. Pvt. Ltd., it's M.D. Shri Suresh G. Kewalramani and the appellants, the Commissioner Customs, Kandla passed the impugned order. 2.1 The Commissioner confiscated Marine Paints, Thinners Anodes under Section 111 (m) and 111 (n) of the Customs Act, 1962. The Zinc Aluminium anodes were also confiscated under Section 111 (l) of the Act. He imposed the following penalties on the noticees :- (i) Rs. 6,79,360/- (Rupees Six Lakhs Seventy Nine Thousands Three Hundred Sixty Only) on M/s. Jaisu Shipping Co. Pvt. Ltd., Ka ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allets which included anodes also. They were under the bona fide belief that the consignment was not liable to duty. They prayed that they may be exonerated. 3.1. M/s. Bharat Marine Company, CHA had filed the transshipment application dated 23/04/99 with the Assistant Commissioner Customs for transhipment of nine pallets of ship stores arrived per vessel MV TIGER PEARL V-700. They believed the instructions of the importer that the consignment was meant for a vessel on foreign run eligible for duty free import (transshipment under Section 87 of the Customs Act). The documents furnished to the Custom house for transshipment of the consignment indicated that the nine pallets transhipped covered also anodes alleged to be suppressed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The non-submission of invoice relating to anodes was a clerical omission on the part of the agent as they were under the mistaken impression that M.T. AL NIMS was eligible for import of duty free stores and there was no need to misdeclare the quantity and value of the goods under import. They prayed that the penalty may be vacated. 4. During hearing, the learned Counsel for the appellants submitted that the format of transshipment application did not require furnishing value of the consignment and that the packing list submitted contained details of all the goods. Therefore charge of misdeclaration by M/s. Bharat Marine Company or M/s. Metro Marine Services Pvt. Ltd. was without basis. The goods were believed to be for use as shipsto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the findings of the Commissioner: "The aforesaid indicate that Transhipment Advice No. 1/99 of Chennai Customs or Paints and Thinners was issued only with a firm presumption that goods were meant for vessel M.T. AL NIMS which is a foreign going vessel. The statement of Shri M.B. Govindraj of M/s. Bharat Marine, Chennai dated 15.06.99 recorded under Section 108 also reveal that, they had filed TSA with understanding that goods covered under TSA were meant for foreign going vessel only. The statement of Shri M. Karuppiah Shri R. Byrava Sundaram both of M/s. Metro Marine Services, Chennai dated 15.06.99 16.06.99 recorded under Section 108 of the Customs Act, 1962 also reveal that the goods were transshipped with a belief that, goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8.04.2000 has also stated that, their company were made to believe by M/s. Jaisu Shipping Co. Pvt. Ltd., Kandla that goods supplied were eligible for duty free imports in India. Thus, it is evident from facts circumstances that, M/s. Jaisu Shipping Co. Pvt. Ltd., Kandla has mislead the supplier that goods were being supplied to a foreign going vessel as a ship stores". We find from the transshipment application that the imported goods had been transshipped for warehousing at Kandla without payment of duty. The packing list submitted along with the application before Chennai Customs had included all the imported goods including Aluminium and Zinc anodes. We find that in terms of Section 85 of the Customs Act, any goods entered for ware ..... X X X X Extracts X X X X X X X X Extracts X X X X
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