Case Law Details
Navyug Ship Breaking Co. Vs C.C. Jamnagar (CESTAT Ahmedabad)
CESTAT Ahmedabad held that Oil contained in Bunker Tanks in Engine Room of Vessel imported for breaking up is classifiable under CTH 8908 along with such vessel.
Facts-
The Appellant imported Vessel for breaking up. CTH 8908 00 00 covers “Vessels and other floating structures for breaking up”. In the course of assessment of the Bill of Entry, the Appellant contended that the Vessels imported for breaking up along with the Oil contained in Bunker tanks in the Engine room of the said Vessels would be classifiable under CTH 8908 00 00 as held by the Hon’ble High Court in the case of Priya Holdings (P) Ltd v CC – 2013 (288) ELT 347 (Guj) and as regards the oil contained in bunker outside the Engine Room, appellant paid duty under protest as according to appellant all bunkers whether inside or outside the engine room are classifiable along with vessel only. The said bill of entry was assessed provisionally on 29-6-2018 classifying the oil contained in bunker inside and outside the engine room under CTH 2710.
By Speaking Order of assessment dated 12-7-2018, the Assistant Commissioner of Customs, relying upon CBIC circular no. 09/2018 dated 19.04.2018, held that the oil contained in Bunker tanks in Engine room of the said Vessels would not be classifiable under CTH 8908 00 00 along with the vessel, but would be classifiable under CTH 2710. He accordingly reassessed the bunkers inside the engine room tank to CETH 2710. There was, however, no speaking order passed as regards, the Oil contained in Bunker tanks outside Engine room of the said Vessel. The appellant vide its letter dated 16.7.2018, inter alia pointed out that the issue of classification of fuel oil, MGO, and lubricating oil inside the engine room and outside the engine room, both are involved, and that all such Oil, according to appellant being incidental to import of vessel, is required to be classified under CTH 8908.
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