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2018 (4) TMI 422 - CESTAT MUMBAIRectification of Mistake - classification of imported vessels - Jurisdiction - Held that: - In considering the submissions of the notice on classification, the adjudicating authority has not paid sufficient attention to the harmonious construction of the descriptions in chapter 89 of the First Schedule to the Customs Tariff Act, 1975 - Under the scheme of the tariff, there are certain governing principles: the specific prevailing over the general and the later being more valid than the previous are relevant here. It would appear from the findings of the adjudicating authority that the declaration furnished at the time of filing the bill of entry for the ships, when customs duties were 'nil' and, therefore, susceptible to placement without thought of consequence, weighed heavily. Chapter 89 covers all manner of vessels: from ships, ocean-going or otherwise, to diverse others. Heading 8905 applies to floating structures intended for specialized use with navigability as a subsidiary feature. This does not imply that navigation is the significant and compelling feature of those vessels that are classifiable under 8901. All the goods enumerated in chapter 89 have some association with the waters and it is only flotsam, jetsam and wrecks that may be deprived entirely of navigability. It would appear that the adjudicating authority has failed to appreciate the sense and implication of the expression 'navigability' which is required to be harmoniously read with the description in that subheading instead of being read as the distinction between that subheading and other subheadings of the chapter. The classification merits fresh determination particularly in the light of the various judicial decisions dealing with import of 'supply vessels - the mistakes in the order of the Tribunal require rectification. These issues do not find sufficient coverage in the adjudication order. The plea of the applicant for remanding the matter to the original authority till disposal of the dispute on jurisdiction is not to be ignored - In view of the above terms of remand, which would require determination of dutiability itself, recourse to section 111 of Customs Act, 1962 is in jeopardy. it would, therefore, be appropriate to set aside the confiscation in the order-in-original. Application for ROM disposed off.
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