2015 (1) TMI 115 - AT - Customs

Classification of a floating platform SEP Samrat - Classification under CTH 8905 90 90 or under CTH 8905 20 00 - Held that - As per the description of CTH 8905 the categories covered under this heading include goods, inter alia, dredgers, floating cranes, floating or submersible drilling or production platform etc. A plain reading of description of CTH 8905 convey that dredgers, floating cranes and floating or submersible drilling or production platforms have been treated as separately identified groups under CTH 8905. Heading CTH 8905 has been further subdivided into CTH 8905 01 00 (for dredgers), CTH 8905 20 00 (for drilling/production platforms - whether floating or submersible) and CTH 8905 90 90 (for all others including floating cranes). It is not disputed that at the time of import SEP Samrat had a 18 ton crane mounted on it and did not have drilling equipments fixed. CTH 8905 20 00 will cover only drilling/production platforms (whether floating or submersible) which has equipments required for drilling or production fitted on it. This interpretation is fortified by the HSN explanatory notes relied upon by the first appellate authority in Para 5.4 of the OIA, dated 6-8-2013. Even the certificate dated 11-6-2013, issued by Marine Consultants & Engineer Surveyors, also convey that SEP Samrat is not a drilling or production platform. In view of the above, it has to be held that SEP Samrat imported by the respondent without drilling or production capability is correctly classifiable under CTH 8905 90 90. This view is supported by the judgment of Chennai - CESTAT, in the case of C.C., Chennai v. Larsen & Toubro Ltd. (2013 (4) TMI 569 - CESTAT CHENNAI) where Jack-up-Barges without capability of drilling or production, have been held to be classifiable under CTH 8905 90 90. - Decided against Revenue.

Summary

Issues: Correct classification of Self Elevating Platform (SEP) Samrat imported by the respondent under Customs Tariff Heading (CTH) 8905 90 90 or 8905 20 00.

Analysis:
1. The appeal was filed by the Revenue challenging the classification of SEP Samrat under CTH 8905 90 90 by the respondent, while Revenue claimed it should be classified under CTH 8905 20 00.
2. The Revenue argued that the SEP had options for mounting drills, piling operations, and pile load testing, thus should be classified as a drilling platform under CTH 8905 20 00.
3. The respondent argued that the SEP was not a dredger or a drilling/production platform, but correctly classified under CTH 8905 90 90 as floating cranes, supported by a certificate and a case law.
4. The issue revolved around the correct classification of SEP Samrat, which had a crane but no drilling or production equipment mounted on it. The description of CTH 8905 categorizes dredgers, floating cranes, and drilling/production platforms separately.
5. CTH 8905 20 00 covers drilling/production platforms with necessary equipment, while CTH 8905 90 90 includes others like floating cranes. The SEP Samrat without drilling or production capability falls under CTH 8905 90 90, as per the HSN explanatory notes and the certificate provided.
6. The judgment referred to a similar case where platforms without drilling capability were classified under CTH 8905 90 90, supporting the classification of SEP Samrat by the respondent.
7. The Tribunal found no reason to interfere with the first appellate authority's decision and rejected the Revenue's appeal, providing consequential relief to the respondent, if any.