9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (10) TMI 157 - AT - CustomsClassification of imported goods - restricted item - Marine Gas Oil (HSD) lying in the fuel tanks - whether MGO (HSD) should be considered as part of the vessels and be classified under TH 89.08 or would be classifiable under Ch 27 of the Customs Tariff Act, and therefore, is a restricted item? - Held that - whether the Marine Gas Oil imported inside the fuel tanks of vessels which are imported for breaking is subject to ITC restrictions is no longer res integra and is squarely covered by the decision of this Tribunal in the case of A.G. Enterprise 2014 (8) TMI 44 - CESTAT AHMEDABAD , where it was held that so far as classification of the ships/vessel, brought in for breaking up along with surplus fuel, will have to be considered classifiable under Heading 89.08 of the Import policy as an integral part of the vessel/ship, as per opinion given by DGFT under F.No.IPC/4/5(684)/97/82/PC-2(A), dt.26.06.2013 - appeal allowed - decided in favor of appellant.
Issues: Classification of imported Marine Gas Oil (HSD) in vessels for breaking purpose under import/export policy.
Upon perusal of the case, the primary issue revolved around the classification of Marine Gas Oil (HSD) imported inside vessels meant for breaking purposes under the import/export policy. The dispute arose as the Revenue argued that the MGO should be classified under Ch 27 of the Customs Tariff Act as a restricted item, while the appellants contended that it should be considered part of the vessels and classified under TH 89.08 of the import policy. The Advocate for the appellants referenced previous judgments to support their claim. They highlighted the decision of the Tribunal in the case of A.G. Enterprise and its affirmation by the Honorable Supreme Court in the case of M K Shipping & Allied Industries Pvt Ltd. Additionally, they relied on the order of this Tribunal in the case of Shanti Ship Breakers Vs. CC to strengthen their argument. The Tribunal, after hearing both parties and examining the records, found that the issue at hand had already been settled in previous judgments. Specifically, the Tribunal referred to the case of A.G. Enterprise where it was established that surplus fuel stored in vessels imported for breaking should be considered an integral part of the vessel and classified under 89.08 of the Import Policy. The Tribunal emphasized that the opinion/clarification issued by the Joint DGFT should be considered as a clarification by DGFT and is binding on Customs concerning ITC restrictions under the Foreign Trade Policy. Furthermore, the Tribunal clarified that while the DGFT's clarification may not be binding on Customs for classification under the Customs Tariff Act, the vessels brought in for breaking, along with surplus fuel, must be classified under Heading 89.08 of the Import Policy. As imports under ITC (HS) 89.08 are free without restrictions, the MGO/HSD contained in vessels for breaking purposes cannot be subject to confiscation or penalties under the Customs Act. Citing the precedent set by the Tribunal in the case of A.G. Enterprise, the Tribunal set aside the impugned orders and allowed the appeals filed by the appellants, thereby resolving the classification issue in favor of the appellants based on established legal principles and previous judgments.
|
