Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (11) TMI 170 - CESTAT HYDERABAD

2016 (11) TMI 170 - CESTAT HYDERABAD - TMI - Demand - import of Marine Gas Oil (MGO) - denial of benefit of exemption under N/N. 21/2002-Cus - the certificate of DGHC issued for duty-free import was for Marine Gas Oil whereas the goods imported was Light Diesel oil (LDO) - Held that: - reliance placed on the decision of the case of Transocean Discoverer 534 LLC [2015 (7) TMI 816 - CESTAT BANGALORE] where it was held that what was imported was Marine Gas Oil and not Light Diesel Oil and hence the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of the case as put forth by the appellant are summarized as follows: 1.1. The Appellant is an oil field services company engaged in on-shore and off-shore petroleum operations which included oil, natural gas and allied products. The Appellant was awarded a contract by M/s. Oil and Natural Gas Corporation (ONGC) for conducting oil exploration operation in Krishna Godavari basin. The Appellant is a sub-contractor for the said operator engaged in oil exploration. The Appellant imported a vessel alo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tes were issued by the customs confirming the said vessels contained MGO only. 1.2. During assessment, the Department took a view that the imported item is HSD Oil and classified the same under CTH 27101930 and assessed the duty payable as ₹ 26,99,759. Appellant paid an amount of ₹ 6,03,999/- and executed PD bond for the balance amount. 1.3. The Appellant had obtained certificate dated 11/01/2011 from the Directorate General of Hydrocarbons certifying that the consumables on board 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

s. Samples were drawn in respect of the consumables on board the vessel. The test report stated that the sample has the characteristics of Light Diesel Oil (LDO). 1.6. Relying upon the test report, Bill of Entries were assessed under heading 27101930 and to deny the benefit of exemption under Notification 21/2002-Cus for the entire quantity of MGO on the only ground that, the certificate of DGHC issued for duty-free import was for Marine Gas Oil whereas the goods imported was LDO. 1.7. Original .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

001990 is appropriate in terms of supplementary note to Chapter 27. It was further submitted that any petroleum block in which the operations are to be carried out cannot be reached without voyage from port and the vessel has to be necessarily re-exported after completion of exploration activity, consumption of consumables during onward and return journey has to be treated as operations "in connection with" the petroleum operations. 4. The Ld. counsel finally submits that the subject d .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ther the product is MGO or not. Instead of specifically stating whether the product is MGO or not, the Chemical Examiner has chosen to show us that the product is LDO. In the absence of a specific report from the Chemical Examiner that the product is not MGO which was what required by the Custom House, it cannot be said that the Chemical Examiner s report supports the case of the Custom House. There is no evidence to show that the product is not MGO. The Chemical Examiner s report also as observ .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

bably because by the time the letter was written a number of years have already passed. Since it is not the case of the Revenue that the product imported by the appellant does not fulfill the parameters for MGO as per the Indian Standards, we are not in a position to uphold the impugned order taking a stand that what is imported is LDO and not MGO and therefore the benefit of exemption is not available. In fact the learned counsel went one step further and submitted that even going by the r.p.m. .....

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