# In the matter of Sembmarine Kakinada Limited

> NCLT judgment dated 2025-01-07. Citation: TCN-2025-NCLT-00673. The case involves a dispute over customs duty and interest claimed by the Customs Department…

- **Court:** NCLT
- **Order date:** 7 Jan 2025
- **Citation:** TCN-2025-NCLT-00673
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sembmarine-kakinada-limited-d66f9acc

## Summary

### Background

The case involves a dispute over customs duty and interest claimed by the Customs Department against Sembmarine Kakinada Limited ('CD'), a company undergoing liquidation. The CD had imported a Floating Dry Dock (FDD) in 2012 under a duty exemption. The Customs Department claimed that the sale and export of the FDD to a foreign buyer in 2023 constituted a breach of the conditions of the exemption, leading to a demand for customs duty and interest. The Liquidator rejected the Customs Department's claim as belated. The Customs Department filed IA(IBC)/253/2023 seeking to have its claim admitted as part of the liquidation costs and to condone the delay in filing the claim. The Liquidator filed IA(IBC)/261/2023 seeking adjudication on whether the customs duty deposited

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## Facts

Sembmarine Kakinada Limited ('CD') was an integrated offshore and Marine Engineering Company. In 2012, the CD imported a Floating Dry Dock (FDD) under Bill of Entry no. 8617966 dated 29.11.2012, claiming full exemption from customs duty. This exemption was availed under Sr. No. 459 of Notification No. 12/2012-Customs dated 17.03.2012, subject to condition No. 79. The CD was undergoing liquidation, and a public announcement was made on 04.11.2021, inviting stakeholders to submit claims by 01.12.2021. The Liquidator requested the Customs Department to undertake essential maintenance and repairs of the FDD. The Liquidator later exported the FDD to M/s. Asyad Dry Dock LLC, Oman, under Shipping Bill No. 7683680 dated 10.02.2023, obtaining customs clearance on the same day.

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## Issues and analysis

### Issue 1: Whether the Applicant (Customs Department) is entitled to the reliefs prayed for in …

**Ratio:** The principle of moratorium under Section 14 and Section 33(5) of the IBC prohibits the

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**Reasoning:** The NCLT reasoned that the Speaking Order, which formed the basis of the Customs

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**Interpretation:** Section 14 and 33(5) of the IBC impose a moratorium on legal proceedings

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**Application:** The NCLT applied the principle of moratorium to the facts of the case, holding

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Axis Ban…
- **Respondents:** Sembmarine…; Sembmarine…

## Timeline

- **2012-11-29 — Import o…**: Sembmarine Kakinada Limited imported a Floating Dry Dock (FDD) under Bill of Entry no.…
- **2021-11-04 — Public Annou…**: Public announcement was made inviting stakeholders to submit claims on or before…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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