1991 (3) TMI 294 - AT - Central Excise

Summary

Issues:
1. Interpretation of the term "Ocean Going Vessels" under Tariff Item 68 for excise duty exemption.
2. Applicability of previous Tribunal judgment in considering barges as "Ocean Going Vessels."
3. Impact of a subsequent Supreme Court judgment on the classification of vessels primarily intended for inland navigation.

Analysis:
1. The primary issue in this appeal before the Appellate Tribunal CEGAT, New Delhi, was the interpretation of the term "Ocean Going Vessels" under Tariff Item 68 for excise duty exemption. The question revolved around whether the vessels/ships manufactured by the respondents fell within this category as exempted under specific notifications.

2. The lower appellate authority had previously held that the "Barges" manufactured by the respondents were indeed covered by the expression "Ocean Going Vessels" and thus exempted under the relevant notifications. The appellant conceded that a prior Tribunal judgment favored the respondents in treating their barges as "Ocean Going Vessels" under the same notifications.

3. However, the appellant sought to rely on a subsequent Supreme Court judgment in the case of Chowgule & Co. Pvt. Ltd., which raised the issue of vessels primarily intended for inland navigation not qualifying as "Ocean Going Vessels." The appellant argued that as the vessels in question were primarily for inland navigation to transport ores, they should not be considered as "Ocean Going Vessels."

4. The respondent's advocate contended that the Tribunal's earlier judgment directly addressed the exemption notification in question and was applicable to the present case. He argued that the Supreme Court judgment cited by the appellant dealt with a different controversy and did not consider the specific term "Ocean Going Vessels" under the relevant notifications.

5. After considering the arguments from both sides, the Appellate Tribunal agreed with the respondent's position. The Tribunal found that the Supreme Court judgment cited by the appellant was not applicable to the present circumstances. Therefore, based on the Tribunal's earlier judgment supporting the classification of the barges as "Ocean Going Vessels," the appeal was dismissed.

This detailed analysis outlines the key legal issues, arguments presented by both parties, and the Tribunal's decision based on the interpretation of relevant legal provisions and precedents.