TMI Blog2014 (12) TMI 772X X X X Extracts X X X X X X X X Extracts X X X X ..... We also find that the American Bureau of Shipping has also classified the vessel as a ‘supply vessel'. Even if the vessel has a capacity to do anchor handling, even then it would remain as a supply vessel as anchor handling feature is only as an additional facility and would not take away the vessel from the scope of a cargo vessel or a vessel which can transport persons. Valuation - Held that:- As regards the re-determination of value, we find that the Commissioner has adopted a rate of 21.125% of the cost towards freight and insurance. The appellant had given details of the expenditure incurred by them for the transport of the vessel from Dubai to India. In such a situation, the Commissioner could not have added freight and insuran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n and Ramesh Nair, JJ. For the Appellant : Shri N D George, Adv. For the Respondent : Shri Ahibaran, Addl. Commissioner (AR) JUDGEMENT Per: P R Chandrasekharan: The appeal arises from Order-in-Original No: 23/2013/CAC/CC(I)/AB/Gr. VB dated 15/02/2013 passed by the Commissioner of Customs (Imports), New Custom House, Mumbai 2. Vide the impugned order, the learned adjudicating authority has classified the vessel, M.V. Viva, imported by the appellant M/s. Prince Marine Transport Services Pvt. Ltd., Mumbai under CTH 8904 as Anchor-Handling Tug/Supply Vessel' (AHTS), liable to customs duty at an effective rate of 9.356%. He has also determined the value of the goods at ₹ 10,29,81,975/- by holding that the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i.e. Anchor handling tug supply (AHTS) vessels These are vessels which supply oil rigs, tow them to location, anchor them up and, in a few cases, serve as an Emergency Rescue and Recovery Vessel (ERRV). AHTS differ from Platform Supply Vessel (PSV's) in being fitted with winches for towing and anchor handling, having an open stern to allow the decking of anchors, and having more power to increase the bollard pull. 3.1 From the certificate issued by Tidewater Statesman Service relating to the characteristics of the vessel, it has been certified that the vessel can carry 29 persons on board and it has a capacity to carry cargo of 609.6 MT on the deck. There are four bulk tanks with a capacity of 169.9 Cu.Ms, fresh water capacit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vessel and had come to the conclusion that supply vessels designed for movement of cargo and persons are rightly classifiable under CTH 8901. The ratio of the said decision would apply to the facts of the present case also. 3.4 The learned counsel further submits that they have entered into a Charter Party agreement with M/s. Leighton Contractors (India) Pvt. Ltd. wherein the said vessel would be used as a supply vessel and, therefore, it cannot be considered as a towing vessel. 4. The learned Additional Commissioner (AR) appearing for the Revenue, on the other hand, reiterates the finding of the adjudicating authority. He submits that there was one No. Winch Smatco DBL Drum WF Model 84 DAW-250 with pulling capacity of 175 Tons to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the vessel has been classified as supply vessel and is specialized for the purpose of transportation of persons and goods, though earlier the vessel was classified as anchor handling tug/supply vessel. However, the vessel has undergone substantial modification at Dubai before being imported into India. As regards the winch fitted on the vessel it is for pulling/moving/shifting on board heavy equipment and the winch is not meant for any towing purposes at all. However, from the original manufacturer's certificate issued by M/s. Tidewater Statesman Service, the vessel has a capacity to carry 29 persons and capacity to carry cargo as discussed in para 3.1 above. From these evidences available on record, it is seen that the vessel is primar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Hal Offshore Ltd. (supra) and this Tribunal came to the conclusion that supply vessels which are primarily designed for carriage of persons and cargo merit classification under heading 8901. Even if the vessel has a capacity to do anchor handling, even then it would remain as a supply vessel as anchor handling feature is only as an additional facility and would not take away the vessel from the scope of a cargo vessel or a vessel which can transport persons. 5.3 As regards the re-determination of value, we find that the Commissioner has adopted a rate of 21.125% of the cost towards freight and insurance. The appellant had given details of the expenditure incurred by them for the transport of the vessel from Dubai to India. In suc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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