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TMI Blog2019 (6) TMI 1311X X X X Extracts X X X X X X X X Extracts X X X X ..... nding Appeal. This by directing the Petitioner to pay an amount of 50% of the total tax due as a condition precedent for stay of the order dated 17th January, 2017 of the Dy. Commissioner of Sales Tax (Appeals) which forms the basis for recovery proceedings. 2. The Petitioner is in the business of supplying bunker fuels to various incoming and outgoing vessels within the port of Bombay. The Petitioner purchases bunker fuel from Oil Marketing Companies such as Indian Oil Corporation Ltd., and sells them to the vessels which are under Contract with Oil and Natural Gas Commission (ONGC). These vessels are deployed beyond the territorial limits of India but within the Exclusive Economic Zone. These bunker fuel is supplied by the Petitioner as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he order dated 17th January, 2017 passed by the Dy. Commissioner of Sales Tax (Appeals). The amounts payable by the Petitioner to the Revenue under the above order dated 17th January, 2017 was Rs. 20.11 Crores which was an aggregate of tax of Rs. 7.71 Crores, interest of Rs. 4.71 Crores and penalty of Rs. 7.70 Crores. 6. Before the Tribunal, the Petitioner urged the following submissions in support of its prayer for stay of the recovery proceedings consequent to order dated 17th January, 2017 of the Dy. Commissioner of Sales Tax (Appeals): (i) no tax is payable as the bunker fuel as supplied to ship in the territorial waters of India as it is beyond the territorial limits of the State; (ii) the retail sale of petroleum products is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the recovery proceedings ought to have been granted on deposit of 10% of the tax payable. It is submitted that so far as issue nos. (i) & (ii) as urged before the Tribunal are concerned, he does not press it for the purposes of this Petition. However, so far as issue no. (iii) is concerned, it is submitted that in terms of the Schedule 'C' to the Act, the tax payable on bunker oil supplied to foreign going ships is chargeable to lower rate of tax. It is submitted that the term 'foreign going ships' came up for consideration before the Hon'ble the Supreme Court in a customs matter i.e. in U.O.I. v/s. V. M. Salgaoncar & Bros (P) Ltd., 1998 (4) SCC 263, where it has been held that foreign gong vessel means a vessel capable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deem appropriate so as to protect the interest of both the sides. 11. In the present facts, we note that the submission of the Petitioner were duly considered and a prima facie view was taken after consideration of facts and the prevailing law. The challenge to the impugned order before us by the Petitioner is entitlement of lower tax on bunker fuel in view of Schedule 'C' to the Act. This on the ground that the bunker fuel is supplied to foreign going vessels. We note this submission was considered by the Tribunal and rejected at the prima faice stage, as the Petitioner had conceded the position that the bunker fuels are supplied to vessels which are not foreign going vessels. Thus, in view of the above, no fault can be found wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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