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2014 (12) TMI 321 - CESTAT BANGALOREClassification under CETH No. 89039200 or under CETH No. 89011030 - Whether the vessel manufactured by the appellants has to be treated as yacht or it has to be treated as a passenger vessel - Exemption under Notification No. 8/2003/CE dated 01.03.2003 - Held that:- First of all there is no evidence to show that the purchaser is engaged in routine operations of passenger transportation. Learned counsel submitted that the vessel is being used in the backwaters in Kerala. We have to take note of the fact that backwater trips in Kerala are basically for pleasure and not for mere transportation. It is difficult to assume that a person would go by backwater spending lot of money when cheaper transportation facilities are available - As per HSN explanation under the Heading, this Heading covers all vessels for pleasure or sports and all rowing boats and canoes, which means that all vessels which are used for pleasure or sports are to be classified under Heading 8903 and similarly all rowing boats and canoes are to be classified under Heading 8903. The use of word all before ‘vessels’ in the ‘all vessels for pleasure or sports’ means that all vessels which are used for pleasure or sports are to be classified under Heading 8903 even if these vessels are used for transport of persons or goods in view of their exclusion from 8901 as per HSN explanation under Heading 8901. prima facie appellants may not have a case. Nevertheless having regard to the fact that agreement speaks of passenger vessel, other authorities have treated the vessel as passenger vessel and therefore much more details are required to be considered - Partial stay granted.
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