By TIOL News Service

MUMBAI, MAR 31, 2014: THE brief facts are that one vessel ‘Dredger Volvox Hansa' arrived at Marmagao port on 18.08.2000 and commenced dredging operation on same day till 29.09.2000 and thereafter it sailed.

A show cause notice was issued on 09.10.2001 for proposing penalty under section 114A of the Customs Act, 1962 alleging suppression. The Commissioner held that as the activity of the respondent was in the knowledge of the department on 18.08.2000 itself, therefore, extended period of limitation cannot be invoked.

The order was reviewed by the Committee of Chief Commissioners and an appeal came to be filed before the CESTAT.

The Revenue representative submitted that the observation of the Commissioner that the copies of documents which were submitted to Port Trust have been sent to the Customs is not based on record.

The respondent submitted that the vessels remained in Marmagao port for dredging operation and if the respondents had not submitted the document to the customs, the vessels could not have been allowed for dredging operation during the impugned period.

The CESTAT observed -

“6. Admittedly, in this case, show-cause notice has been issued by invoking the extended period of limitation. Further, I find that the vessel was entered in the port on 18.08.2000 and started dredging operation. It remained there for one month and nobody objected the dredging operation of respondent during that period. Therefore, as observed by the Commissioner that these documents have been filed with the customs cannot be doubted.”

Holding that there is no infirmity in the order, Revenue appeal was dismissed.

(See 2014-TIOL-477-CESTAT-MUM)