Customs, Excise and Gold Tribunal - Mumbai
Priya Blue Industries Ltd. vs Commr. Of C. Ex. And Cus. (Appeals) on 11 May, 2006
ORDER
Jyoti Balasundaram, Vice-President
1. The appellants herein had imported a Vessel M.V. Herbert for breaking up and filed Bill of Entry dated 17-7-96 for its clearance for home consumption. Provisional assessment was finalised by the Assistant Commissioner directing payment of duty on imports under appropriate heading of the Customs Tariff for ship's stores, fuel and oil on board the vessel, relying upon the CBE&C Circular No. 37/96-Cus., dated 3-7-96. This order was challenged by the importers, who sought classification of fuel and oil under Chapter Heading 89.08 of the Customs Tariff Act, on the ground that the fuel and oil were contained in the vessel's machinery and engine and hence, were required to be classified under Chapter Heading 89.08, as per paragraph (b) of the abovementioned circular, but challenge was unsuccessful. Hence this appeal.
2. We have heard both sides. As per CBE&C Circular cited supra issued on the basis of the opinion of the World Customs Organisation at Brussels, only that fuel and oil, which is contained in the vessel's machinery and engines can be regarded as farming integral part of vessels and, hence, classifiable under CETA Heading 89.08 and remaining fuel and oil other than the above, are classifiable separately thereon appropriate heading. Therefore, the classification is dependent upon the location of the fuel and oil. In this case there is no dispute that fuel and lubricating oil was contained in a tank kept in the engine room. Therefore, it cannot be considered as being contained in the vessel's machinery and engine. Hence, the lower authorities have correctly classified the goods in question on merits in their respective headings.
3. In the light of the above, we upheld the impugned order and reject the appeal.
(Dictated in Court)