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2016 (5) TMI 605 - CESTAT MUMBAI

2016 (5) TMI 605 - CESTAT MUMBAI - 2016 (333) E.L.T. 502 (Tri. - Mumbai) - Classification - Pontoon with spuds - Whether to be classifiable under Chapter Heading No. 89.05 eligible for exemption from payment of duty or under Chapter Heading 89.07 attracting rate of duty of 20% ad valorem - Product is a self elevating platform - Held that:- as per HSN explanatory notes, the floating articles which answer to description as self-elevating platform get covered under CH. 8905 and floating structure w .....

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. 89.07 is incorrect, as the reliance placed by the department that products are pontoon, is misplaced as the very same explanatory notes exclude pontoons having the character of vessel falling under Heading No. 89.01 or 8905. In the case in hand, it is found that Indian Registrar of shipping has registered the floating structure manufactured by the appellant as “self-elevating platform” and has given at the registration as “AF-SEP-RANI & AF-SEP-RAJA”.

We find strong force in the cont .....

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y the appellant is to be held as the products falling under 89.05.90. - Decided in favour of appellant - E/3291/1998-Mum and E/614/2007-Mum - Final Order Nos. A/3592-3593/2015-WZB/EB and Misc. Order No. M/5007/2015-WZB/EB - Dated:- 20-10-2015 - Shri M.V. Ravindran, Member (J) and C.J. Mathew, Member (T) Shri S.B. Gabhawala, CA, for the Appellant. Shri R.K. Magi, Additional Commissioner (AR), for the Respondent. ORDER [Order per : M.V. Ravindran, Member (J)]. - The appellant herein has filed a mi .....

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are appellant herein filed a classification Declaration No. 125/95-96 in respect of the products manufactured by them pontoon with spuds claiming the classification under chapter Heading No. 89.05 and claiming exemption from payment of duty, while the lower authorities have come to a conclusion that the product was correctly classifiable under chapter Heading No. 89.07 attracting rate of duty of 20% ad valorem. Both the lower authorities have come to the same conclusion. 4. Learned chartere .....

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clear that the products of appellant are nothing but floating structures which are used for various purposes like drilling or production, cementing etc. He would further submit that the issue was first decided in the favour of the appellant assessee by the order of the Tribunal dated 21-5-2004 [2004 (172) E.L.T. 415 (Tribunal)] but on an appeal, Supreme Court remanded the matter back for reconsideration [2015 (319) E.L.T. 359 (S.C.)]. He would further submit that the chapter Heading No. 89.07 as .....

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ill for export classifying the same under Customs Chapter Heading No. 89059090, in support of which he produces the copy of the shipping bill. It is his submission that after the completion of the work, Affcons imported the same goods back and filed the bill of entry claiming classification under 89059090, which was accepted by the Commissioner of Customs Ahmadabad and duty was discharged accordingly. It is his submission that aggrieved by such an order, revenue preferred an appeal before the Tr .....

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s self elevating platform and that any floating article which is capable of floating in water needs to be registered with Indian Registrar of Shipping and produces the copy of the certificate of registration. It is his submission that the Indian Registrar of Shipping is constituted by the government of India for accurate classification and registration of the vessels/floating structures. 6. Learned departmental representative on the other hand would draw our attention to the order-in-origin .....

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ed at site. He would submit that the said floating structure pontoon with spuds did not have any other machinery installed nor does it have quarters/accommodation for crew which is prime requirement for to be classified on drilling platform. It is his further submission that in short these flouting structures cannot be considered as a vessel falling under Chapter Heading Nos. 89.012 to 89.04, nor would also fall under 8905 as there was no navigability of the said floating structure. He would sub .....

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ect. 7. We have considered the submissions made by both sides and perused the records. 8. The issue that falls for consideration, in the case in hand is whether the product manufactured by the appellant is classifiable under chapter Heading No. 89.05.90 and eligible for exemption for payment of Central Excise duty or 89.07.90 liable to full rate of duty. 9. It is undisputed that the appellant manufactures floating structure of big size and clears the same from the factory premises .....

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requirement at site. It is also undisputed that the products manufactured by the appellant are registered with the Maritime Board by the Indian Registrar of Shipping, as self-elevating platform for operation in Indian coastal areas of maximum water depth, including tide, of 30.0M, maximum wave height 2.0M, maximum total current of 7.0 Knots and wind speed of 50. Knots; the said registration on request of application for change is also issued for the change in name of the said floating structure .....

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tructures (E.G. Rafts, Tanks, Coffer Dams, Landing Stages, Buoys and Beacons 89.07.10-INFLATABLE RAFTS 89.07.90-OTHER The claim of appellant is that the product is question would fall under CH. 8905.90, while the Revenue feels products would be rightly classified under CH. 89.05.07. We tried to understand the tariff entry by looking into chapter notes but there are none. We then referred to the HSN explanatory notes of both the chapters, which were produced by both sides. On perusal of HSN expla .....

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igability of which is subsidiary to their main function, These normally perform their main function ill a stationary position. They include : light-vessels; drill-ships; fire-floats; dredgers of all kinds (e.g. grab or suction dredgers); salvage ships for the recovery of sunken vessels; permanently moored air-sea rescue floats bathyscaphes; pontoons fitted with lifting or handling machines (e.g. derricks, cranes; grain elevators) and pontoons clearly designed to serve as a base for these machine .....

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lf-propelled and equipped with powerful engines. These are used for the repair or transport of amphibious vehicles or other craft. Floating or submersible drilling or production platforms, Such platforms are generally designed for the discovery or exploitation of off-shore deposits of oiler natural gas. Apart from the equipment required for drilling or production, such as derricks, cranes, pumps, cementing units, silos, etc., these platforms have living quarters for the personnel. These platform .....

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e water level. (2) Submersible platform, the substructures of which are submerged over the work sites with their ballast tanks resting on the sea bed 111 order to provide a high degree of stability to the working platform which is kept above 1110 water level. The ballast tanks may have skirts or piles which penetrate more or Jess deeply into the Sea bed. (3) Semi-submersible platforms which arc similar to submersible platforms, but differ from them in that the submerged part does not rest on the .....

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N explanatory note to Chapter 8907 reads as under. 11. It can be seen from the above reproduced HSN explanatory notes, the floating articles which answer to description as self-elevating platform get covered under CH. 8905 and floating structure which has drilling or production platform are covered under 8905.20 and any other floating structure is covered under 8905.90. The factual matrix as reproduced by us herein above indicates that the floating structures as manufactured by the appellan .....

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905. In the case in hand, we find that Indian Registrar of shipping has registered the floating structure manufactured by the appellant as self-elevating platform and has given at the registration as AF-SEP-RANI & AF-SEP-RAJA we reproduce the said certificates of registration. Against such an evidence, Revenue has not come up with contrary evidence to show that the floating structures as manufactured by the appellant are not a vessel. Both the lower authorities have mis-construed description .....

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ind strong force in the contention raised by the learned counsel for the appellant that same product self-elevating platform was imported back into India after its foreign voyages, was sought to be classified by the department under CTH 8905.2020, the Tribunal has upheld classification under 89.05.9090. In our considered view, arguments by the learned counsel are acceptable as the classification of the same products when re-imported into India after its foreign voyage would be the same as is man .....

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tion of the imported goods under CTH 8905 20 00. SEP Samrat at the time of Import has one Manitowoc 18000 crane (Turret Mounted Crane) along with six mooring winches, gen sets, Jacking system, power packs, pumps & other miscellaneous equipments. However, there were no other equipments like drills or production equipments mounted on the floating platform SEP Samrat, but as per the website literature of Drydocks World SEP Samrat, manufactured for importer Affcons Infrastructure Ltd., had the o .....

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