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TMI Blog2016 (11) TMI 302X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellant is the sub-contractor for the said operator engaged in oil exploration and is mainly engaged in sub-sea equipment supply. For the said purpose, the Appellant imports vessels required for the operations. b) Notification No. 21/2002-Cus. Dated 01.03.2002, vide Sl. No. 217 exempts specified goods mentioned in List 12 of the said Notification which are required in connection with petroleum operations undertaken under specified contracts under the NELP from the whole of customs and additional duties. List 12 of the said Notification inter alia, includes vessels, equipments, spares, materials and consumables for running, repairing or maintenance of such goods. Thus, the fuel used for running such vessels is exempt under S. No. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s contrary to the Appellant's contention that the imported MGO is different from HSD oil. f) The test reports of the sample MGO which was received from the Chemical Examiner, Visakhapatnam Custom House gave the flash point, kinematic viscosity, density and sulphur content of the samples and stated that the sample has characteristics of Light Diesel Oil (LDO). g) Finalization of the assessment in respect of Bills of Entry Nos. 158/29.7.2008, 250&251/3.11.2008, 268/20.11.2008, 281/8.12.2008, 79/30.4.2009, 133/19.4.2010 and 116/8.03.2011 in terms of Section 18(2) of the Customs Act, 1962 (hereinafter referred to as the 'Act') by assessing duty of Rs. 2,12,47,531/being the customs duty on Light Diesel Oil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... settled issue that Marine Diesel Oil is alternatively called as LDO classifiable under CTH 27101940 and MGO alternatively called as HSD is classifiable under CTH 27101930. 4. The benefit of exemption was to be extended based on the Essentiality Certificate which is clearly issued for MGO/FO and not for LDO. Hence, exemption cannot be extended to LDO. 5. To avail benefit of a Notification, a party must comply with all the mandatory conditions of the Notification. Relied on CC, Bangalore V/s. Maestro Motors Ltd. [2004 (174) ELT 289 (S.C)] and CCE, New Delhi V/s Hari Chand Shri Gopal [2010 (260) ELT 3 (S.C)]. 2. The issue stands squarely covered by the judgments in the case of Transocean Discoverer 534 LLC Vs CCE [2015 ELT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ;As regards Sulfur content he submits that according to the standards it should be 1.5% maximum whereas in the present case Chemical Examiner has found the percentage of Sulfur to be 0.880 which is again within the limits for MGO. As regards Flash point, he submits that 85°C is the Flash point according to the Chemical Examiner and according to ISO 61.5°C is the minimum. Therefore the sample fulfilled the requirement of MGO as far as combustion ash is concerned. 8. Lastly he submits that Fluidity at 40°C has to be between 2.000- 6.000 mm2 and in this case which is 4.6 which is again between 2-6 and therefore within the norms prescribed for MGO. Prima facie we find these submissions to be correct. Further he takes us throu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned counsel drew our attention to a letter written by the appellants to the Customs saying that the sample may be referred to CRCL for re-examination. Further no action was taken on this letter probably 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. 3. The above ratio was applied by this Bench in the case of CGG Marine V CCE&ST Vizag [Final Order No. A30472 /2016 dated 16.05.2016]. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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