Larsen And Toubro Limited Vs C.C. (CESTAT Ahmedabad)
We find that the issue involved in the present case is that whether the appellant’s goods imported and supplied as a B&D spares of Interceptor Boats to Cost Guard, Government of India is eligible for exemption Notification No. 12/2012-Cust (Sr. No. 460 or 469A). We examine the eligibility of exemption notification under Sr. No. 460 of the Notification No. 12/2012-Cust. In this regard, we find that the adjudication authority has denied the exemption only on the ground that the interceptor boats manufactured and supplied by the appellant is not a warship.
It is undisputed that intercepted boats used by the Coast Guard Ministry of Defence Government of India is only for security of the costal border of the country and the boats are not used for any other purpose. It is also undisputed that the said interceptor boat are equipped with arms and ammunition, therefore, it is absolutely without any doubt that the interceptor boat is a warship.
Spare parts supplied for warship is clearly exempted under Notification No. 12/2012-CustAccordingly, we have no hesitation to hold that the appellant are clearly eligible for exemption Notification No. 12/2012-Cust (Sr. No. 460). In this position, we do not find it necessary to examine the eligibility of the exemption Notification No. 12/2012-Cust (Sr. No. 469A).
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
The brief facts of the case are that the appellant have supplied interceptor Boats and spare parts thereof to the Government of India for use by the Coast Guards for the costal security, by equipping the Coast Guards with fast speed interceptor boats. While few interceptor boats had already been delivered in past and others were in manufacturing stage, the appellant under direction of Indian Coast Guard (GOI) had supplied such B&D spares, after undertaking desired inspection and testing at their premises. The appellant Vide letter dated 30.06.2017 informed the customs authorities of said supply of B&D spares and submitted the relevant documents with a request to cancel the bond as furnished in term of Notification No. 12/2012-Cust (Sr. No. 469A). The department vide show cause notice dated 31.08.2020, disputed the exemption of duty, as claimed by the appellant on the import of said B&D spares. The appellant submitted the reply dated 08.10.2020 submitting that the appellant has fulfilled the conditions of notification by submitting the NDA certificate issued by the Government of India. They alternatively claimed the exemption under Serial No. 460 of the Customs Notification No. 12/2012-Cust (Sr. No. 460). However, the adjudicating authority confirmed the demand, imposed the penalties and redemption fine Vide Order-In-Original. Being aggrieved by the said Order-In-Original the appellant filed the present appeal.
2. Shri. Ashish Chauhan, Learned Counsel appearing on behalf of the appellant submits that the exemption under Serial No. 469A was of Notification No. 12/2012-Cust was denied on the ground that the spares supplied by the appellant is not in connection with the manufacture of interceptor boats. He submits that even though the spares were separately supplied but since it was in or in relation to manufacture and accessories thereof. The said supplies clearly covered under exemption. He placed reliance on the following judgments:-
