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TMI Blog2016 (5) TMI 605X X X X Extracts X X X X X X X X Extracts X X X X ..... products manufactured by them "pontoon with spuds" claiming the classification under chapter Heading No. 89.05 and claiming exemption from payment of duty, while the lower authorities have come to a conclusion that the product was correctly classifiable under chapter Heading No. 89.07 attracting rate of duty of 20% ad valorem. Both the lower authorities have come to the same conclusion. 4. Learned chartered accountant draws our attention to the facts in impugned orders records and submits that they are seeking the classification as the product question is as to self elevating platform used by their clients on the site. He would then draw our attention to the photographs of the products manufactured and cleared by them; explains that the self elevating platform is nothing but "pontoon with spuds". He would submit that the HSN entry of 8905 and explanatory notes to if read together, it will be very clear that the products of appellant are nothing but floating structures which are used for various purposes like drilling or production, cementing etc. He would further submit that the issue was first decided in the favour of the appellant assessee by the order of the Tribunal date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oon which is in dispute was on visual examination is a floating structure with segments joint together with the help of interlocking pins like males and females plugs. He would also draw our attention to the fact that the floating structures were never assembled at the factory premises of the appellant but was assembled at site. He would submit that the said floating structure "pontoon with spuds" did not have any other machinery installed nor does it have quarters/accommodation for crew which is prime requirement for to be classified on drilling platform. It is his further submission that in short these flouting structures cannot be considered as a vessel falling under Chapter Heading Nos. 89.012 to 89.04, nor would also fall under 8905 as there was no navigability of the said floating structure. He would submit that the registration granted by Indian Registrar of Shipping is not the final word as to the classification of the product in question. He would submit that the product is correctly classified as other floating structures under Heading No. 8907.90. He would draw our attention to the HSN Heading No. 89.07 and submit that the HSN specifically holds that pontoon are covered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... classified under CH. 89.05.07. We tried to understand the tariff entry by looking into chapter notes but there are none. We then referred to the HSN explanatory notes of both the chapters, which were produced by both sides. On perusal of HSN explanatory notes for chapter Heading No. 89.05, we find that the said chapter note reads as under : "89.05 - 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. 8905.10 - Dregers 8905.20 - floating or submersible drilling or production platforms 8905.90 - Other (A) Light-vessels, fire-floats, dredgers, floating cranes, and other' vessels the navigability of which is subsidiary to their main function, These normally perform their main function ill a stationary position. They include : light-vessels; drill-ships; fire-floats; dredgers of all kinds (e.g. grab or suction dredgers); salvage ships for the recovery of sunken vessels; permanently moored air-sea rescue floats' bathyscaphes; pontoons fitted with l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kirts or piles which penetrate more or Jess deeply into the Sea bed. (3) Semi-submersible platforms which arc similar to submersible platforms, but differ from them in that the submerged part does not rest on the sea bed. When working, these floating platforms are kept in a fixed position by anchor lines or by dynamic positioning. Fixed platforms used for the discovery or exploitation of off-shore deposits of oil or natural which are neither floating nor submersible, are excluded from this heading (heading 84.30). This heading also excludes ferry-boats (heading 89.01), factory ships for processing fishery (heading 89.02), cable-laying ships and weather ships (heading 89.06)." While the chapter note of HSN explanatory note to Chapter 8907 reads as under. 11. It can be seen from the above reproduced HSN explanatory notes, the floating articles which answer to description as self-elevating platform get covered under CH. 8905 and floating structure which has drilling or production platform are covered under 8905.20 and any other floating structure is covered under 8905.90. The factual matrix as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... correct classification of a floating platform SEP Samrat imported by the importer. Respondent importer claimed the classification of SEP Samrat under CTH 8905 90 90 whereas Revenue is claiming the classification of the imported goods under CTH 8905 20 00. SEP Samrat at the time of Import has one Manitowoc 18000 crane (Turret Mounted Crane) along with six mooring winches, gen sets, Jacking system, power packs, pumps & other miscellaneous equipments. However, there were no other equipments like drills or production equipments mounted on the floating platform SEP Samrat, but as per the website literature of Drydocks World SEP Samrat, manufactured for importer Affcons Infrastructure Ltd., had the option for mounting drills. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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