Great Eastern Shipping Company Ltd. Vs Union of India (Madras High Court)
Madras High Court held that countervailing duty [CVD] is not leviable on vessels that are imported into India prior to notification no. 12/2012-Cus. dated 17.03.2012 which is later converted from foreign-run to coastal run. Accordingly, writ petition is allowed.
Facts- The petitioner has filed the present petition challenging the communication dated 11.07.2012 in respect of two vessels i.e., ‘Jug Rahul’ and ‘Jug Rishi’ for non-payment of countervailing duty (CVD) on conversion from foreign to the coastal run. Notably, the impugned communication referred to the Notification 12/2012 where serial no. 462 stipulates that goods under tariff heading 8901, are exempt from basic customs duty (BCD) and CVD, subject to the condition that appropriate duty is remitted upon conversion to coastal run. ‘Jug Rahul’ has been imported in 2005. No Bill of Entry has been filed as the law did not mandate the filing of Bill of Entry at that relevant point in time. As far as ‘Jug Rishi’ is concerned, Bill of Entry has been filed on 28.03.2011. Both imports are prior to date of Notification dated 12/2012.
Conclusion- Held that Orissa High Court in Great Eastern Shipping Company Ltd and Ors v Union of India and Ors held that three vessels being ‘Jug Arnav’, ‘Jag Ratan’ and ‘Jag Rani’, that had been imported on 30.04.2003, 13.11.2007 and 26.08.2011, respectively. The Court proceeds on the basis that Notification No. 12/2012 would not adversely impact those imports that had taken place prior to date of Notification being 17.03.2012 as the applicability of the Notification is prospective. The above decision has been accepted by the Revenue and no appeal has been filed and the ratio is hence applicable to the present matter as well. We are hence of the considered view that the impugned demands under communications dated 11.07.2012 are liable to be quashed.
