TMI Blog2024 (4) TMI 384X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of duty be consumed on the vessel as stores during the period such vessel is a foreign going vessel. In order to appreciate the contention raised in the disputed matter, it is necessary to notice a basic premise that under Customs Act goods entering into India becomes imported goods and chargeable to duty under Section 12, unless they are exempt from payment of duty by virtue of specific provisions. It is significant to note that ship stores or spares thereof are not exempted from the operation of Section 12, but by virtue of Section 53 of the Act are allowed to be transited without payment of duty - Similar provision is found in Section 54 in respect of the goods imported into a customs port or customs airport but is intended for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls on their own propulsion arrived at Alang on different dates. Upon the arrival of the vessels at Alang, the shipping agent (Appellant) filed Bills of Entry which were assessed by the proper officer and duty payable on bunker consumption from Bedi port to Alang was figured out. The said calculation of bunker figures was figured out on the basis of log books available onboard duly signed by the Master of Vessel. The Appellant however did not accept the duty liability for the reason that the vessels were cargo‟ and not vessels‟. It appeared that as per Section 55 of the Customs Act, 1962, the goods transshipped under Section 54 at any customs station would be liable to duty and shall be entered in like manner as goods are entered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties. There is no dispute over the fact that the said tug had not performed any coastal voyage or undertaking any coastal operations prior to entry into India at Bedi port or whilst on voyage from Bedi port to Alang and hence, the voyage from Bedi port to Alang must be seen in the context of the voyage undertaken by the mother vessels from foreign port laden with a tug meant for delivery at Alang. The price negotiated between the overseas seller and Indian buyer is also inclusive of freight payable for the delivery of tug at Alang. Inasmuch as it is an admitted position that importer has paid duty on the freight element also, the proposition to demand duty on the bunker element consumed for completing to voyage up to Alang would amount to d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Customs Act 1962 prescribes the provisions for liability of duty on goods transited under Section 53 or transshipped under Section 54 as follows : Section 55.-Liability of duty on goods transited under section 53 or transhipped under section 54. - Where any goods are allowed to be transited under section 53 or transhipped under sub-section (3) of section 54 to any customs station, they shall, on their arrival at such station, be liable to duty and shall be entered in like manner as goods are entered on the first importation thereof and the provisions of this Act and any rules and regulations shall, so far as may be, apply in relation to such goods. As per the above provision when the goods are permitted to be transited to any customs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transhipment of stores. - (1) Any stores imported in a vessel or aircraft may, without payment of duty, remain on board such vessel or aircraft while it is in India. (2) Any stores imported in a vessel or aircraft may, with the permission of the proper officer, be transferred to any vessel or aircraft as stores for consumption therein as provided in section 87 or section 90. Section 87. 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 period such vessel or aircraft is a foreign-going vessel or aircraft . 9. Section 2(21) of the Customs Act defin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yment of duty. Similar provision is found in Section 54 in respect of the goods imported into a customs port or customs airport but is intended for transhipment of goods. Section 86(2) of the Act inter alia provides that any Imported stores may be transferred to any vessel as stores for consumption therein as provided in Section 87. Section 87 inter alia provides that imported stores imported without payment of duty be consumed on the vessel as stores during the period such vessel is a foreign going vessel. 11. In the present matter we find that the tug had originally arrived at Bedi ports from overseas port laden on mother vessel. Mother vessel was unable to complete the delivery of the said tug at Alang owing to requirement of deeper drau ..... X X X X Extracts X X X X X X X X Extracts X X X X
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