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TMI Blog2018 (10) TMI 768X X X X Extracts X X X X X X X X Extracts X X X X ..... 51000 is duty free and hence no duty will be chargeable on up gradation cost. (2) The impugned goods are not liable for confiscation under section 111 of the Customs Act, 1962. (3) I drop the penal proceedings against the importer in view of the facts that there is no mis-declaration or suppression of facts." 2.0 Facts leading to the said decision and appeal are as follows: i. M/s Dredging Corporation of India (Respondents) are Government of India Undertaking. Their dredging vessel "Dredge Aquarius" (vessel) an Indian Flag Vessel, registered in Indian Registree, was given on Charter Hire Agreement (contract) to M/s Dredging International Belgium (foreign party) for a period of 150 weeks extendable further by 104 weeks. In pursuance o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the repair, insurance and freight charges both ways. vii. The foreign company has incurred the expenditure of Euro 7 million towards repair and upgradation of the vessel, and have also used the vessel for nearly four (4) years, the Custom duty was required to be paid on the value equivalent to depreciated value of the expenses incurred toward repair and upgradation. Thus as per department duty was payable on depreciated value i.e. Euro 3.78 million. viii. A show cause notice was issued to the respondents demanding duty on the depreciated value (Euro 3.78 Million). Show cause notice also proposed confiscation of the goods under Section 111(m) of the Customs Act, 962 (Act) read with Para 2.17 of the Foreign Trade Policy, 2007-2009, secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, applicable to any imported goods, shall be the rate and valuation in force, - (a) in the case of goods entered for home consumption under section 46, on the date on which a bill of entry in respect of such goods is presented under that section; (b) in the case of goods cleared from a warehouse under section 68, on the date on which the goods are actually removed from the warehouse; (c) in the case of any other goods, on the date of payment of duty : Provided that if a bill of entry has been presented before the date of entry inwards of the vessel or the arrival of the aircraft by which the goods are imported, the bill of entry shall be deemed to have been presented on the date of such entry inwards or the arrival, as the case may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e whole or part of any interest payable under this section." From the above section it is quite evident that the duty liability has to be determined on the date and time of entry of goods for importation into the country. Undoubtedly the date of entry inwards of the vessel in this case is 25.11.2006 as is evident from the documentary evidences as follows: In the present case the identity and date of entry inwards of the vessel can be established by the following documentary evidences such as - a) The letter F No S/6-57/2002 Exp dated 11.10.2002 issued by the Superintendent of Customs on conversion of vessel from "Coastal Run Vessel" to "Foreign Run Vessel" by Mumbai Customs on 1.10.2002. b) Certificate issued by Boarding Superintendent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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