Exemption from registry

Appellant/Port Qasim Authority temporarily imported used tugs along with all machinery and fittings without filing goods declaration within stipulated period

Customs authorities after serving show-cause notice found the appellant guilty of evading taxes and customs duties

Appellant was directed to deposit amount of evaded taxes and customs duties along with penalty through order-in-original

Contention of the appellant was that tug boats were imported on the basis of lease agreement, therefore the same were government property and exempted from customs duty and sales taxes

Validity

Tug boats were obtained on the basis of "bare boat charter" through temporary importation as evident from the invoices prepared by the Shipper favouring the appellant reading as "Tug for two years operation at Port Qasim (Temporary Import)"

Argument of appellant that the tugs were hired on the basis of "time charter" on the basis of clauses incorporated in charter did not render the Tugs as being hired on "time charter" basis as these conditions were suitably amended with the consent of the appellant for keeping entire hold on the Tugs during the period of hiring without any influence of the owner despite contrary to the definition of "time charter"

Appellant had hired the tug boats on the basis of "bare boat charter" not "time charter", therefore liable to pay customs duty and taxes

Appeal was dismissed.