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| Yacht not imported, no need to pay duties: Reliance to HC |
| Press Trust Of India / Mumbai May 09, 2009, 00:58 IST |
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Miffed by official claims that it had smuggled in a yacht, Anil Ambani group firm Reliance Transport and Travel today said the vessel was a foreign ship that had permit to sail to India and the question of paying duties did not arise.
Since the yacht had not been imported or registered in India, the company argued that it need not pay duties. “All allegations made by the customs are denied,” Reliance said in its reply to the Customs Department’s affidavit in the Bombay High Court that is hearing a petition by Ammolite Holdings, another Anil Dhirubhai Ambani Group company, challenging the seizure of the yacht. “Due to range constraint, it (the yacht) was shipped on board another vessel,” Reliance Transport said. It further said the assistant commissioner (imports) had passed an order in November last year allowing the boat to sail on its own as an independent ship and that order was still in force. The department in its affidavit had alleged that Ammolite Holdings had violated the Customs Act by “smuggling in” the yacht and not paying the duties. The yacht was not imported to India, but it is a ship with foreign flag that can sail in international as well as Indian waters, so there was no question of paying any import duty, the rejoinder said.
Both ADAG companies had filed a petition challenging seizure of the Yacht by Customs on the ground that duty had not been paid while importing it into India.
According to Customs department the yacht was imported in contravention of Section 111(m) of the Customs Act, hence, is liable for confiscation.
“The petitioner has indulged in smuggling by violating the provisions of the Act and in league with others to evade duties,” Assistant Commissioner of Customs SR Vichare had stated in reply to the petition.
It was bought by Ammolite Holdings last October and has been chartered by RTTL, another ADAG company, Customs official said.
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