2007 (1) TMI 315 - AT - Customs

Summary

Issues: Classification of vessel under Customs Tariff sub-heading 89.01 or 89.05

The appellants filed a Bill of Entry for clearance of a second-hand Pontoon upgraded to Accommodation Barge from Singapore, claiming classification under Customs Tariff sub-heading 89.01. The authorities rejected the claim, stating that the vessel should be classified under CT sub-heading 89.05. The main issue was whether the vessel's primary function of accommodating persons near oil rigs made it fall under 89.01 or 89.05.

Classification under Customs Tariff sub-heading 89.01:

The vessel in question lacks self-propulsion and needs to be towed. It is equipped with amenities such as beds, kitchen facilities, and entertainment systems. It has moorings to remain stationary and a crane for heavy goods transfer. The vessel's contract involves accommodating personnel near production platforms at sea and can serve various functions like scientific research and cable laying.

Scheme of classification under Chapter 89 of the Tariff:

Chapter 89 of the Tariff categorizes vessels based on their function and utility. Heading 89.01 covers vessels for transporting persons or goods, while 89.05 includes vessels like floating cranes where navigability is subsidiary to their main function. The vessel in question primarily provides accommodation and its navigability is secondary to this function.

Comparison with other vessels and legal precedents:

The vessel's function is similar to a houseboat, providing stationary accommodation near oil rigs. The argument that a similar vessel was classified differently does not establish a precedent. Legal judgments cited by the appellants are deemed irrelevant as they do not pertain to the vessel's primary function for classification purposes.

Judgment and Conclusion:

The Tribunal found that the vessel's primary function of accommodating personnel near oil rigs makes its navigability subsidiary to this function. Therefore, it was classified under CT sub-heading 89.05, upholding the authorities' decision and dismissing the appeal.