TMI Blog2017 (1) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... t the order of the Additional Commissioner is liable to be set aside. Demand set aside - appeal allowed - decided in favor of appellant. - C/755/2007-767/2007, C/769/2007 to 782/2007, C/1687/2010 to 1690/2010 - A/31282-31312/2016 - Dated:- 30-11-2016 - Ms. Sulekha Beevi, C.S., Member(Judicial) Shri. V.M. Doiphode, Advocate for the Appellant. Shri. Nagraj Naik Shri. Arun Kumar, Deputy Commissioners (AR) for the Respondent. Pragathi Sea Foods Ltd, G.G.Tilak, Navodaya Sea Foods Ltd., Sri Raghavendra Associates, Gopal Krishna Enterprises, Y.G.K.Murthy, Gopal Krishna Associates, Fatima Seafoods Managing Partner Capt S Sayeed, Managing Partner, Capt. S. Sayeed, Sri Nandini Sea Foods Partner Shri M. Shetty, Victory Marine Exports, Shri Thiagarajn Sekhar, Zeenath Se Foods, Balaji Exports, Susi Seafoods (P) Ltd., T.M. Chowdhury, D. Babu Rao, Shri Sahok Karkera M/s. Kaveri Fishers, Ms Jagannadh Associates, Dwaraka Sea Foods, B.G.K. Murthy M. Partner M/s. Dwaraka Sea Foods, Anzara Marines, Abdul Rasheed, T. Sekhar Magaging, CC ST- Visakhapatnam-Cus ORDER The issue involved in these appeals being the same, they are disposed by this comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reliance Industries Ltd., the Ministry of External Affairs vide Notification dated. 07.02.2002 has extended the jurisdiction of the Customs Act, 1962, Customs Tariff Act, 1975 to the whole of the Exclusive Economic Zone and Continental Shelf of India for the purpose of extraction of mineral oil and supply of goods for such activities. iii) As per the CBEC Circular No. 22/2002-Cus. dated. 23.04.2002 bringing of any goods from any other country to any place in EEZ or continental shelf of India in connection with any activity related to extraction or production of mineral oils, shall be treated as import under the Customs Act, 1962 and would be charged to duty accordingly. iv) By diverting the mid-sea duty free bunkers by reasons of collusion or willful mis-statement or suppression of facts, extended period is invokable and mid-sea duty free bunkers received by fishing trawlers and utilized in oil exploration activities shall be considered to have been improperly imported into India in contravention of Section 11 of the Customs Act, 1962 and therefore the quantity of mid-sea duty free bunkers are liable for confiscation under section 111(d) and 111(o) of the said Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved by Trawlers in Continental Shelf of India and EEZ. iii) The Assessee/trawlers were not directly or indirectly connected with the prospecting for extraction or production of mineral oils in the Continental Shelf of India or the Exclusive Economic Zone of India. Such activities are conducted only by specially designed seismic vessels which are fitted with specialized equipments for the said survey. Such vessel will carry suitable scientists and lab technicians. Assessee vessel is a mere fishing boat fitted with fishing gear meant for trawler and this is primarily doing only fishing work and therefore the provisions of Circular No. SO/189 (E) dated. 07.02.2002 applying to activity of oil exploration will not apply and benefit of Section 87 would be applicable. iv) Indian navy and Ministry of agriculture had given clearance for undertaking activity as chase boat. Ministry of Shipping, Road Transport and Highways Department vide letter dated. 20. 09.2005 had clarified that fishing trawlers are permitted to undertake the activity such as rescue, co-ordination support in line with the fishing activity and therefore the activity undertaken by the fishing trawlers is i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (S.C.)]. That Commissioner (Appeals) erred in holding that the impugned vessels are foreign going vessels, and are eligible for duty free stores under Section 87 of Customs Act. 7. I have heard both sides. 8. The foremost contention raised by the counsel for assessee is that the Customs officers of Visakhapatnam were not proper officers for the area of Continental Shelf of India and Exclusive Economic Zone and consequently had no jurisdiction to issue the show cause notice or confirm the demand or impose penalties. The Ld. Counsel relies on the judgment passed in the case of Sagarika Sea Crafts Ltd., Vs. CC, Visakhapatnam [2010 (261) ELT 825 (Tri. - Bang.)]. The Co-ordinate Bench of the Tribunal in the said case of Sagarika Sea Crafts Ltd., has analyzed the issue of jurisdiction and has held that the Customs, Visakhapatnam has no jurisdiction and therefore could not have demanded duty on bunkers received by vessels plying in the EEZ beyond territorial waters off the coast in his jurisdiction. The facts of Sagarika Sea Crafts case are identical to the facts of the present case. The relevant paragraph is reproduced as under: We find that the Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and confirm demand or impose penalties. 10. The Commissioner (Appeals) in the orders impugned in appeal Nos. 1687 to 1690 has held that the fishing trawlers are foreign ongoing vessel and therefore the duty demand is not sustainable. The relevant portion is reproduced as below: In view of the same, I hold that the extended areas of application of Customs Act, 1962 and the Customs Tariff Act, 1975 will have no bearing on the definition of a foreign going vessel or aircraft in as much as there has been no change in the definition of the territorial waters of India as defined in section 3(2) of the Territorial Waters Continental shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976. As per Section 2(21)(ii) of the Customs Act, 1962, Foreign going vessel or aircraft includes any vessel engaged in fishing or any other operations outside the territorial water of India . As per section 87 of the Customs Act, 1962, Imported stores may be consumed on board a foreign going vessel or aircraft-Any imported stores on board a vessel or aircraft (other than stores to which section 90 applies) may, without payment of duty, be consumed thereon as stores during the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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