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TMI Blog2016 (9) TMI 565X X X X Extracts X X X X X X X X Extracts X X X X ..... essel, submitted the opening inventory duly signed by the Master of the Vessel and the Customs Officers. The respondents filed a Bill of Entry No.2125/13.7.98 for the estimated quantity of bunkers expected to be consumed during the Vessel's coastal voyage. The Bill of Entry was passed on provisional basis by the Officers as per the provisions of Customs House P.N.93/97 after obtaining P.D. Bond. The Provisional duty was calculated and 110% of the calculated duty was paid by the Appellants as per the provisions of the said PN 93/97. The Vessel was reverted to foreign run at Tuticorin on 9.9.98 and a closing inventory was taken by the customs authorities at Tuticorin port. The closing inventory showed that all the bunkers were of Singapor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the Appellants by the Deputy Commissioner of Customs, Visakhapatnam, alleging therein a short payment of Rs. 12,69,193/- on finalisation of the provisional assessment. The Show Cause Notice dated 26.07.2001 proposed as to recover the short collection of duty of Rs. 12,69,193/- from the respondents. 1.3. The aforesaid Show Cause Notice was adjudicated upon by the Deputy Commissioner of Customs, Visakhapatnam vide Order-in-Original No. 67/99 dated 25.11.99 wherein he confirmed the finalization of the assessment on the above lines and ordered for payment of the duty amounting to Rs. 12,60,863/-. Aggrieved by the impugned Order, the respondents filed appeal before the Commissioner (Appeals). 1.4. The appellate authority found substanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... available during the coastal voyage. The above principle is widely using in different occasions and different aspects. The Circular No. 129/40/95-CX dt. 29.5.1995 issued by Board on the subject of Export rebate therein it has mentioned that "it may be ensured that when the procurements are at varying rate of Central Excise duty and/or varying value, the duty incidence is worked out using First-in-First-out principle. The earliest procurements shall be adjusted first and subsequent procurements shall be taken into account only when the earlier procurements have been taken into account". ii. The appellate authority observed that no commodity can be taxed twice by assuming that the quantity of 572.25 MT of Fuel Oil consumed during the coasta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Foreign Run is not found in the Act. The only concept in the Act is 'FOREIGN GOING VESSEL' under Section 2(21) of the Act, meaning, any vessel, for the time being engaged in the carriage of goods between any port in India or any port outside India whether touching any intermediate port in India or not. The subject vessel is a "Foreign Going Vessel". As such, no duty need be paid under Section 87 of the Act as the stores can be consumed duty free, on board a foreign going vessel. ii. This Delhi High Court in the case of Great Eastern Shipping co. Ltd (GESCO) vs Union of India [1986 (25) ELT 171] has held Bunkers or goods remaining the ship is not liable to import duty. It is only goods intended to be unloaded that are liabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity of 193.03 MT of fuel oil is also to be included in the opening inventory of 678.22 MT of fuel oil in order to ascertain the total quantity of fuel oil concerned during the coastal run. Hence Commissioner was correct in concluding that resultant duty liability on the net quantity of fuel oil Viz., 379.22 MT could be fastened on the appellants. 7.2. At the same time, the Commissioner has adopted a very just and fair reasoning with regard to ascertaining the assessable value of imported fuel oil Diesel oil lying in the foreign bunkers for finalisation of the provisional assessment. The adjudicating authority had taken contemporaneous price of identical goods of which the bunkers were supplied to the same class of buyers during mater ..... X X X X Extracts X X X X X X X X Extracts X X X X
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