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2019 (1) TMI 1290 - AT - CustomsClassification of imported goods - import of vessels “Lewek Altair” and “Lewek Atlas” - whether classified under CTH 8905 90 90? - the Commissioner has imposed a meagre amounts of redemption fine under section 112 (a) which is less than 1% of the value of the vessels and this needs to be enhanced - benefit of exemption N/N. 12/2012-Cus, dated 17.03.2012 as amended. Held that:- The vessels in question are meant to support the ONGC’s oil drilling platform and were imported as such - As is evident from all available documents that the vessels carry out this function by carrying personnel and equipment from shore to the platform and back. Such a function is essential for the off shore oil drilling platforms which are located far away from the shore. In such a factual matrix, it cannot be held that the navigation of the vessels is not the primary function. The navigation indeed, is the primary function of the vessels and dynamic positioning system helps to perform this function efficiently. Similarly, loading or unloading goods or embarking or disembarking personnel are incidental to the transportation. Therefore, the vessels in question are rightly classifiable under Customs Tariff Heading 8901 9000 as claimed by the appellant. The vessels cannot, by any stretch of imagination, fall under CTH 8905. Consequently the benefit of exemption notification No. 12/2012-Cus is also admissible to the appellant - The demand of duty under CTH 8905 9090 denying the benefit of exemption notification No. 12/2012-Cus, dt. 17.03.2012 by Ld. Commissioner needs to be set aside - confiscation and redemption fine set aside - penalty set aside - appeal allowed - decided in favor of appellant.
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