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2024 (3) TMI 1192

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..... ent No. 4-GMB would come to an end and therefore the respondent No. 4-GMB is required to issue the No Due Certificate qua the subject vessel which was auctioned to the petitioner by the Customs Authority in accordance with law. With regard to the reliance placed by the learned advocate for the respondent No. 4-GMB in the decision of the Supreme Court in case of O. Konavalov [ 2006 (3) TMI 145 - SUPREME COURT] is concerned, the said decision is rendered under the Maritime Laws under the provisions of the Merchant Shipping Act, 1958 in relation to the pre-existing right of the crewmen vis-a-vis Section 115 read with Section 126 of the Customs Act. The Hon ble Apex Court in the facts of the said case applied the principles enshrined in Article 21 to a foreigner for holding that confiscation by the Government of Vessel cannot extinguish the pre-existing rights of the crewmen as India has become signatory to various international conventions honouring the social, political, civil and economic rights of human beings. It was further held that India has travelled very far from 1950 and the Courts have given way to dynamic constructive approach in the aspect of social justice while referrin .....

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..... leased to direct respondent no. 1 and 2 to refund the amount paid by the Petitioner towards e-auction of MSV Safina Al-Miraz alongwith amount incurred by the Petitioner towards repairing of the Vessel, with interest at the rate that may be deem fit by this Hon ble Court in the interest of justice and equity. (C) YOUR LORDSHIPS be pleased to award the cost to be paid to the Petitioner from the respondent authorities, in the interest of justice and equity; (D) YOUR LORDSHIPS be pleased to grant any other and further relief deemed just and proper in the interest of justice. 5.1. The brief facts of the case are that the petitioner who is engaged in marine parts supplies, dealing in purchase of vessel etc. registered under the Goods and Service Tax Act at Okha Port applied for auction held by the respondent No. 3 for sale of the vessel confiscated under Section 115 of the Customs Act, 1962 (for short the Act ) pursuant to the E-auction notice dated 23 rd February, 2018 for sale of the vessel bearing registration-MSV Safina Al-Miraz (BDI 1331)(herein after referred to as the vessel ). 5.2. The petitioner was declared as a successful buyer and delivery order dated 05.03.2018 was issued by .....

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..... resaid prayers. 6. Learned advocate Mr. Premal Rachh for the petitioner submitted that the petitioner is a bona-fide purchaser of the vessel and in absence of any outstanding dues quantified by the respondent-GMB as well as in view of the provisions of Section 126 of the Act, when the vessel is confiscated by the Customs Authority under Section 115 of the Act, the same would vest in the Central Government free from encumbrance if the respondent No. 4-GMB was not justified in denying the No Due Certificate to the petitioner for shifting the vessel from Salaya Port to Okha Port. 7. On the other hand, learned advocate Mr. Hirak Shah for the respondent No. 1 referred to and relied upon the averments made in the affidavit-in-reply wherein it is stated that as per the provisions of Section 126 of the Act once any goods are confiscated by the Customs, ownership of the goods vests in Central Government and in accordance with the rules and regulations of the Act, the subject vessel was e-auctioned via MSTC. It was therefore submitted that the once the vessel is transferred to the petitioner, the respondent Nos. 2 and 3 have no role to play for the purpose of issuing No Due Certificate as th .....

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..... ch has entered India and is afterwards found with the whole or substantial portion of such goods missing, unless the master of the vessel or aircraft is able to account for the loss of, or deficiency in, the goods. (2) Any conveyance or animal used as a means of transport in the smuggling of any goods or in the carriage of any smuggled goods shall be liable to confiscation, unless the owner of the conveyance or animal proves that it was so used without the knowledge or connivance of the owner himself, his agent, if any, and the person in charge of the conveyance or animal : Provided that where any such conveyance is used for the carriage of goods or passengers for hire, the owner of any conveyance shall be given an option to pay in lieu of the confiscation of the conveyance a fine not exceeding the market-price of the goods which are sought to be smuggled or the smuggled goods, as the case may be. 126. On confiscation, property to vest in Central Government : (1) When any goods are confiscated under this Act, such goods shall thereupon vest in the Central Government. (2) The officer adjudging confiscation shall take and hold possession of the confiscated goods 10. It is not in disp .....

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