Commissioner of Customs Vs Asean Cableship Pvt. Ltd (Kerala High Court)
Vessel under SEAIOCM Agreement categorized as foreign going vessel is entitled for customs exemption under section 87 of Customs Act
Kerala High Court held that the vessel under the South East Asia and Indian Ocean Cable Maintenance Agreement [SEAIOCM Agreement], the vessel can be categorized as a foreign going vessel and hence entitled for exemption u/s. 87 of the Customs Act. Accordingly, writ by revenue dismissed.
Facts- The vessel Asean Explorer is a Singapore vessel that was engaged to carry out repairs of cables located in Indian Ocean, and was berthed at Kochi for operating the zones connecting India, different Asian and West Asian Countries and Australia. The repair activities were in relation to cables spread over an area of 1.05 lakh kms of which 256 kms was within the territorial waters of India. As per the time charter under which the vessel was engaged, it was expected to move across various Ports inside India and also beyond the Indian waters and during these excursions, the vessel would carry spares, bunkers, crew and technical staff on board. It appears to have been the bone fide belief of the respondent that the vessel in question was a Foreign Going vessel and that therefore, the spares and consumables in the store of the vessel would not attract the levy of customs duty under the Customs Act.
