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2015 (2) TMI 738 - AT - CustomsClassification of vessel- Seismographic research vessel or Light vessels, fire floats etc. - NOSITUR A SOCIIS - Held that:- According to HSN Explanatory Notes, heading 8905 covers vessel which perform their main function in a stationary position. The vessels covered by the said entry include light vessels, fire-floats, dredgers, floating cranes, floating docks; floating or submersible drilling or production platforms and all other vessels which perform their main function in a stationary position. On the contrary the vessel under import undertakes seismic survey of the sea bed and its subterranean surface in large area running into hundreds of square kilometres. Such survey vessels can not obviously perform the function if it remains in a stationary position. This is a material and significant difference in the nature of the function undertaken by 'Geo Hind Sagar' when compared with the vessels of CTH 8905. Further from the contracts entered into with ONGC and NACOR, it is seen that the vessel should possess significant navigational capability to undertake and perform the tasks assigned and there are specific standards laid down in this regard. If the vessel has to undertake the survey at constant speed and depth, its navigability can not be said to be subsidiary to its main function and both are equally important. Further as per HSN Explanatory Note, vessels falling under CTH 8906 include scientific research vessels; laboratory ships, etc. within its ambit. It is a settled position in law as held by the hon'ble apex court in the case of Wood Craft Products Ltd. [1995 (3) TMI 93 - SUPREME COURT OF INDIA] that for resolving any dispute relating to tariff classification, a safe guide is the internationally accepted nomenclature emerging from the HSN. Revenue has placed reliance on the principle of NOSITUR A SOCIIS. As per this principle, entries in the schedule of sales tax and excise statute list some articles separately and some articles are grouped together; when they are grouped together, each word in the entry draws colour from the other words, therein. If we apply above principle to the fact of the present case, heading 8905 refers to light vessels, fire-floats, dredgers, floating cranes, floating docks; floating or submersible drilling or production platforms and other vessel navigability of which is subsidiary to the main function. IN other words what can come under CTH 8905 are only such vessels whose navigability is subsidiary to its main function. As observed in the preceding para, this condition is not satisfied in the present case and therefore, this principle has no application whatsoever to the facts obtaining herein. In our considered view, CTH 8906 which covers scientific research vessels is the most appropriate classification in respect of a seismic research vessel. Since there is no duty liability on the vessels falling under CTH 8906, the entire custom duty demand confirmed in the impugned order completely fails. Decided in favour of appellant.
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