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TMI Blog2014 (8) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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. As the imports under ITC(HS) 89.08 are free without any restrictions, therefore, such MGO/HSD contained in the vessels brought in for breaking up, cannot be held as liable for confiscation under Section 111(d) of the Customs Act, 1962 and no penalties upon the appellants are imposable in the present appeals under Section 112(a) of the Customs Act, 1962 - Decided in favour of assessee. - C/13527,13603,13604,13643,13644,13719-13721, 13739-13741, 13754,1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the ships/vessels contain Marine Gas Oil (HSD) in the tanks of the vessel in addition to the MGO (HSD) lying in the tank of the ship engine. As per the agreements, buyers of the ships also take over the oil bunkers, unused lubricants and unused stores and provisions at the port of delivery of the vessels without any extra payments. The commercial invoice showing the purchase of vessels meant for ship breaking does not disclose any extra price for the MGO (HSD) etc. so acquired by the appellants. Appellants paid the applicable duty on MGO (HSD) but according to Revenue, MGO (HSD) is a canalysed item as per ITC (HS) 2012, Schedule I of import policy and HSD is subject to import only through IOC subject to Para 2.11 of the Foreign Trade Poli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erein it is held that oil stored in the bunkers of the vessels is to be classified under 89.08 as an integral constituent of the vessel. He also relied upon the following case-laws to emphasize that interpretations made by the DGFT on the import policy are binding on the customs authorities:- i) Cine Land Vs CC, Chennai [1999 (114) ELT 653 (Tribunal)] ii) Unimers India Ltd Vs CC Mangalore [2010 (250) ELT 225 (Tri-Bang)] iii) Richardson Hindustan Limited Vs UoI [1988 (37) ELT 496 (Bom.)] 3. Shri K. Sivakumar, (AR) appearing on behalf of the appellant argued that as per CBEC clarification issued under F.No.528/74/2012-B TO (TU), dt.22.01.2013, the fuel contained in the vessels brought for breaking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of interpretation of any provisions contained in FTP, or classification of any item in ITC(HS) or HPB v1 or HPB v2, or Schedule of DEPB Rates (including content, scope or issue of an authorization there under) said question or doubt shall be referred to DGFT whose decision thereon shall be final and binding. 4.2 As per the above provisions of Foreign Trade Policy any doubt regarding classification of any item in ITC (HS) or HPBv1 or HBPv2 or schedule of DEPB Rates should be referred to DGFT whose decision shall be final and binding. As per the clarification/opinion of Joint Director General of Foreign Trade New Delhi, surplus fuel stored in fuel tanks of vessels/ship brought for breaking up is classifiable under 89.08 along with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te supra.clarification on these items classification under ITC (HS) and the ITC Policy. 5. In view of above, an opinion/clarification issued by Joint DGFT has to be considered as a clarification issued by DGFT will be binding on the customs so far as ITC restrictions are concerned under Foreign Trade Policy. However, the same clarification issued by DGFT may not be binding on the Customs for the classification of the same goods under the Customs Tariff Act which is the sole domain of the Customs Authorities. However, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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