Moheb Ali M., Member (T)
1. The appellant a Public Sector Undertaking supplied bunkers to coast guard vessels claiming benefit of general exemption No. 70/77 as amended which is applicable to stores supplied to Naval Vessels. The period involved is September 1986 to June 1990. The show cause notice is issued on 16.10.91 invoking larger period of limitation alleging suppression of facts from the Department with intent to evade duty.
2. At the material time the Coast Guard vessels were chartered by Indian Nevy. Supply orders were placed by Naval stores officer. The Chief of Naval Staff, Naval Head Quarters at New Delhi confirmed the accounting of Naval stores of POL to Coast Guard Ships.
3. Heard both sides.
4. Notification No. 70/77 as amended from time to time exempts stores supplied to Naval Ships. Coast Guard force was constituted under Indian Coast Guard Act. The vessels of coast guard therefore belong to that force which are different from Naval vessels. One can take a strict view that the coast guard vessels are not Naval vessels. Further the AR4As filed by the appellant only mention the name of the vessel without exactly stating whether the vessel to which bunkers are supplied is a Naval vessel or not, while at the same time, claiming the benefit of exemption.
5. We observe that mere suppression of fact does not necessarily mean there was intention to evade duty. The appellants were under the honest impression that supplies made to coast guard vessels, at the behest of Indian Nevy also are entitled for duty free bunker. Suppression of facts with intent to evade duty is not proved. The demand is time barred. The appeal is allowed. The order of the lower authority is set aside.
(Pronounced in Court)
Indian Oil Corporation Ltd v. Commissioner Of Customs And Central Excise
Indian Oil Corporation Ltd v. Commissioner Of Customs And Central Excise
(Customs, Excise & Service Tax Appellate Tribunal, West Zonal Bench At Mumbai)
Appeal No. 231/96-Bom (Arising out of Order-in-Original No. 60/COMMR/1995 Dt. 20.10.1995 Passed by Commissioner of Customs and Central Excise, Rajkot) | 26-03-2004
Advocate List
- For Petitioner : S.P. Sheth, Adv.
- For Respondent : Ajay Saxena, Senior Departmental Representative
Bench
- Jyoti Balasundaram (J)
- Moheb Ali M. (T), Members
Eq Citations
- 2004 (170) ELT 554 (TRI. - Mumbai)
- LQ/CESTAT/2004/1100
Head Note
Excise — Demand — Time limit — Limitation period — Invocation of larger period of limitation — When justified — Suppression of facts from Department with intent to evade duty — Appellant a Public Sector Undertaking supplied bunkers to coast guard vessels claiming benefit of general exemption No. 70/77 as amended which is applicable to stores supplied to Naval Vessels — Show cause notice issued on 16.10.91 invoking larger period of limitation alleging suppression of facts from Department with intent to evade duty — At the material time the Coast Guard vessels were chartered by Indian Nevy — Supply orders were placed by Naval stores officer — Chief of Naval Staff, Naval Head Quarters at New Delhi confirmed the accounting of Naval stores of POL to Coast Guard Ships — Held, mere suppression of fact does not necessarily mean there was intention to evade duty — Appellants were under the honest impression that supplies made to coast guard vessels, at the behest of Indian Nevy also are entitled for duty free bunker — Suppression of facts with intent to evade duty is not proved — Demand is time barred — Limitation Act, 1963 — S. 3(1) — Central Excise Act, 1944, S. 11-A(1)
