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2014 (3) TMI 127 - CESTAT AHMEDABADManufacture - Classification of wooden vessel hull - manufacturing of wooden hull motor yacht - Job work - export of goods - M/s. ABG had received a wooden structure from M/s. WBB for further fittings in their shipyard - ABG had discharged the service tax liability on such job work undertaken by them - M/s. ABG had been always stating that the yacht is to be exported from their premises which has been allowed by the port officer as well as customs authorities. - Held that:- adjudicating authority has erred in coming to the conclusion that the yacht was cleared from the M/s. ABG shipyard to home consumption. The holding the services as being manufacturing activities may not arise as there is no dispute to the fact that M/s. WBB had cleared a wooden hull with super structure to the appellant, on which further activities were undertaken; the resultant structure was cleared for further fitment to Dubai, in terms of these, it cannot be held that the appellant M/s. ABG had intention to evade duty and hence misclassified the product. - there is strong force in the contentions raised by the ld. Counsel that if the goods have been exported, there cannot be any demand of duty and the minor procedural irregularities, if any, ought to be condoned. - Demand with interest and penalty set aside - decided in favor of assessee. Issue of classification of Hull - Held that:- The appellants M/s. WBB have been canvassing before the authorities that they had bonafide belief that the said hull cleared by them gets classified under 89.06 and not under 89.03 and at the most it can be a question of misclassification which does not require invocation of extended period for demand of duty - matter remanded for re-adjudicating the case.
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