Bringing rig into India for repairs is not import for home consumption

Noting that the adjudication order did not record that the rig was in operation within the territorial waters of India, or that the rig did not operate outside the territorial waters of India, Supreme Court has set aside the demand of duty on said rig, brought in India for the purpose of repairs and subsequently sent out.

The Court was of the view that mere repair of a vessel is not putting the vessel to use in India and would not result in home consumption.

Department’s plea of taxable import, considering the fact that there was release of foreign exchange and grant of various approval and import licence, was rejected by the Court in the case Commissioner v. Aban Loyd Chiles Offshore Ltd., holding that for deciding the question whether the rig was imported into India, the requirement of home consumption has to be satisfied.