TMI Blog2014 (12) TMI 321X X X X Extracts X X X X X X X X Extracts X X X X ..... o 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 u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfirmation of duty demand for more than ₹ 11 lakhs with interest and penalty under Section 11AC of Central Excise Act 1944. 3. The issue involved in the present dispute is only whether the vessel manufactured by the appellants has to be treated as yacht or it has to be treated as a passenger vessel. The Commissioner in the order has observed that the vessel is not merely a boat for transportation of passengers or goods. It is a pleasure craft having air-conditioned room lounge/bar area, attached toilets, swimming platform etc. He has also observed that the purchaser was not engaged in the activity of transporting passengers but was actually engaged in cruise/excursion etc. 4. The learned counsel for the appellant submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or goods, other than vessels of Heading 89.03 . From this explanation it is also inferred that some vessels of transport of persons or goods are also classifiable under Heading 8903 because of the use of the words other than vessels of Heading 8903 in this explanation. Entry 8903 of the HSN reads as under:- 89.03 - Yachts and other vessels for pleasure of sports; rowing boats and canoes (+) 8903.10 - Inflatable Other: 8903.91 - Sailboats, with or without auxiliary motor 8903.92 - Motorboats, other than outboard motorboats 8903 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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