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TMI Blog1998 (4) TMI 280X X X X Extracts X X X X X X X X Extracts X X X X ..... 1988 that the vessel imported was a pleasure yacht classifiable under sub-heading No. 8903.99 of the Customs Tariff and was not eligible for the benefit of Notification No. 133/87-Cus. The appellants had claimed assessment under sub-heading No. 8901.10. In reply to the show cause notice, alternative classifications had been sought under sub-heading No. 8905.90 or sub-heading No. 8906.00. The matter was adjudicated by the Collector of Customs, Bombay, who under his order-in-original dated 1-7-1988 held that the imported vessel was classifiable under sub-heading No. 8903.99 and was not eligible for the benefit of exemption under Notification No. 133/87-Cus., dated 19-3-1987. 2. The matter was heard on 4-3-1998 when Shri Joseph Vellapally, Sr. Advocate with Shri Anurabh Chaudhary, Advocate, appeared for the Appellants. Shri R.S. Sangia, JDR, represented the Respondents/Revenue. 3. Shri Joseph Vellapally, Sr. Advocate, stated that the vessel was imported by the appellants for conducting surveys and for that purpose the survey equipment had been placed on the board of the vessel. He referred to the certificate dated 16-2-1988 by the Marine Consultancy Services wherein it had been ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all kinds". For clearance of the said vessel, the importers, among other documents, submitted a copy of the British Registry wherein the vessel had been registered as Pleasure Yacht. A copy of the certificate from the British Registry is placed at page 214 of the Paper Book. It describes the various particulars of the vessel. Against framework and description of vessel, it has been recorded as wood-pleasure yacht . The pleasure yacht was not classifiable under sub-heading No. 8901.10 but under sub-heading No. 8903.00. The vessel was examined by the Customs and it was found to be equipped with the following items :- (1) air conditioned bedrooms, bathrooms, pantry etc. (2) coloured television set make allyone (3) video cassette recorder, model No. US 700 TC (4) music system throughout vessel (5) bar fridge (6) fully equipped galley (7) inflatable skiboat (8) wind surfer, and (9) snorkeling gear. 7. The following items were also found lying on the floor of the yacht :- (1) Fathom Meter (small, old and used) (2) Side Scan Sonar (3) Recording Current Meter They were old and used and were not fitted to any part of the yacht. 8. In the various communication ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he vessel rather than its use is the determining factor. The classification of a vessel may not generally change, unless structural changes are effected, by its use by a particular customer for a purpose other than the purpose for which it is designed. 11. Under Heading No. 89.03 of the Customs Tariff, yachts and other vessels for pleasure or sports; rowing boats and canoes were covered. Under Chapter 89 the vessels were to be classified on the basis of their basic design. Their essential character and main function had to be related to the design as to be of a particular kind (refer Chapter Note 1 of Chapter 89). There are vessels for the transport of persons or goods; there are fishing vessels, factory ships and vessels for processing or preserving fishery products, tugs and pusher craft etc. There is nothing like survey boats as such. 12. The vessel under consideration was built in the year 1979 in Rome, Italy and was registered in the year 1980 in UK as pleasure yacht. Its engines were overhauled in June, 1986 and the accommodation cabins of passengers and crew were refurbished and reconditioned. There was no indication that the basic design or the essential character of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 89.03 were not eligible for such exemption. 16. The appellants had submitted that the vessel imported by them was classifiable alteratively under Chapter sub-heading 8905.90 or under Chapter sub-heading No. 8906.00 or sub-heading No. 8901.90. Heading No. 89.05 is for light vessels, fire floats, dredgers, floating cranes, and other vessels the navigability of which is subsidiary to their main function; floating docks; floating or submersible drilling or production platforms. sub-heading No. 8905.90 is residuary sub-heading. Heading No. 89.06 covers vessels not covered elsewhere including war ships and life boats other than rowing boats. sub-heading No. 8901.90 is for vessels other than those covered by sub-heading No. 8901.10, 8901.20 and 8901.30 for the transport of goods and other vessels to the transport of both persons and goods. None of these headings, sub-headings cover the vessel in question. We do not find any specific mention of any vessel known as survey vessel. They had to fit in with the scheme of the tariff and the use of the vessel is relevant for the classification only when such use is referred to in the tariff entry. 17. On the consideration of the examination r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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