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TMI Blog2017 (5) TMI 1327X X X X Extracts X X X X X X X X Extracts X X X X ..... se barges did not have engines of their own and could not navigate on their own power, they were being towed by tug. Bills of entry were filed classifying the goods under CTH 8901 10 40 and claimed the examination under Notification No.21/2002-Cus. dated 1.3.2002. (Sl. No.352). As per the examination report, item imported is Dumb Floating Barge mounted with crane with grab which is operated by DG set of capacity 475 KVA. It has also been reported that the vessel has crew cabins, pantry and mess room and dimension of the barge is 46M x 33.3M x 5.45M having cargo hold to store and transport cargo. The barge also had a crane mounted on it. The lower authority classified the items under 8905 90 90 and extended concessional duty at 5% in terms o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c to it since 8901 10 40 covers barges specifically, the same are to be classified as per the specific entry. (v) The Commissioner (A) has erroneously concluded that since the said vessel has a crane mounted on it, the same is a floating crane, ignoring the very basic characteristic of having a storage hold for storing and transporting cargo. (vi) The Heading 8905 covers the crane which floats and is not applicable to a barge with a cargo hold which is also equipped with crane as additional facility. The dimensions of the barge clearly indicate that it is meant to transport cargo. (vii) He also relied upon following case laws: a. Arcadia Shipping Ltd. vs. CC, Ahmedabad: 2006 (201) ELT 139 (Tri.-Mumbai) maintained in 2008 (221) ELT A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arges" or 8901 90 00 as "other vessels for transportation of goods or persons". This view has not been accepted by the Revenue. It is the view taken by Revenue that 8901 10 covers various vessels which on the basis of description, can be inferred as those for transport of persons. Heading 8901 90 00 also covers other vessels with the dual purpose of transport of persons and goods. Revenue, further, is of the view that all the vessels of 8901 will need to have the capacity of navigation i.e., the vessels should have its own propulsion for them to be capable of being used for transport of goods / persons. Since the imported vessels are not having the means of self-propulsion, according to Revenue, they will not be classifiable under 8901. Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nue under Heading 8904, as a tug, the Tribunal ordered classification as a vessel under Heading 8901. However, the vessel was designed for transport of persons and goods. 5.2 We are of the view that the case laws in that case will not be applicable to the vessels imported in the present case since the barges in question do not have engines whereas the offshore supplied vessel had the facility of moving on its own power as well as towing other vessels. 5.3 In the case law cited by the appellant in the case in the case of Arcadia Shipping Ltd. (supra), the Tribunal has ordered classification of barges imported by the appellant under Heading 8901, however, since it is not clear whether the barges in question in the Arcadia Shipping Ltd. (sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sport of persons or goods. Consequently, the classification goes out of the purview of Heading 8901. Heading 8905 covers vessels of various types whose navigability is subsidiary to their main function. Such vessels need not have the capability of navigation on their own. The imported vessels have cranes on board and can move cargo from ship to shore and vice versa. The purpose of such vessel is to load/unload cargo from ship/shore on to the barge and to move such cargo between ship and shore. Such vessels, in our opinion, will be rightly classifiable under Heading 8905. 7. In view of the above discussions, we uphold the impugned order passed by the Commissioner (A) and reject the appeals filed by the appellants. (Order was pronounced in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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