TaxTMI 
TaxTMI 
TaxTMI 
2011 (6) TMI 616
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....o hatches to store cargo and (d) not competent to cruise with loaded cargo in the high seas. It was observed that the vessel was neither a cargo carrier nor engaged in transportation of bulk commodities and the same was found to be a bulk transhipper for loading/unloading bulk cargo into small barges in stationary position. Based on these findings arrived at on examination of the vessel, the assessing authority suggested that the vessel be classified under Heading 8905. Subsequently, there was some correspondence between the assessing authority and the assessee. In a letter dated 22-4-2008 addressed to the Assistant Commissioner concerned, the assessee submitted that the vessel was a sea-going ship fitted with mechanical means of propulsion, which would imply that navigability is a primary function of the vessel. They submitted that the primary function of the vessel was to carry and transport cargo from other ships waiting at the bay and unload the same at the port and vice versa. It was submitted that this function was possible because the vessel was self-propelled and could navigate on its own. In an annexure to the said letter, the full description of the vessel was furnished, ....
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....tion Certificate' issued on 15-7-2008 by the Principal Officer-cum-Joint DG (Tech), Mercantile Marine Department, Government of India (wherein 'BULK PROSPERITY' is described as "Cargo Ship"); (iii) "RINA" Statement dated 21-4-2008 (wherein the vessel is described as "General Cargo Ship" and it is also stated that the ship is intended to carry general cargo within 20 nautical miles from the shore when in operation and manned); (iv) 'Record of Equipment for the Cargo Ship Safety Equipment Certificate' (for compliance with the International Convention for the Safety of Life at Sea, 1974 as modified by the Protocol of 1988), issued on 15-7-2008 by the Principal Officer-cum-Joint DG (Tech), Mercantile Marine Department, Government of India (wherein details of navigational systems and equipments, life-saving appliances etc. are furnished); (v) 'Certificate of Survey' issued on 27-5-2008 by the Surveyor, Government of India, under Section 27 of the Merchant Shipping Act, 1958 (wherein the vessel is described as "Steel/Transhipper" and the gross tonnage and net tonnage are shown as 10325 and 3283 respectively). Relying on the above documents, the lea....
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....ities from bulk carriers into its own holds and then discharging the commodity into small barges through a dedicated conveyor system. In this connection, he referred to one of the documents produced by the appellant, viz. Annexure-I to the assessee's letter dated 22-4-2008 addressed to the Assistant Commissioner. The learned SDR has also produced material downloaded from internet and has referred to different modes of use of transhippers described therein. This literature mentions mainly three modes of transhipment. The first mode involves discharging of cargo from bulk carrier directly into barges by the transhipper. In this mode, the transhipper can also discharge cargo from the bulk carrier into its own holds during the interval between the commencement of voyage of the barge to the shore and the arrival of the barge back at the side of the transhipper. When the barge returns, the transshipment vessel continues to discharge the cargo from the bulk carrier directly into the barge till the bulk carrier is fully discharged. In this mode of transhipment, the transhipper is in a stationary position. In the second mode of transhipment, the transhipment vessel discharges bulk cargo dir....
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....hat forklift trucks were vehicles for transport though they moved only limited distances. If forklift trucks which were designed for short distance transport only could be classified as 'transport vehicles' for purposes of Tariff Item 29 of the old Central Excise Tariff, "BULK PROSPERITY" which was designed to carry out its function by navigating within a distance of 20 nautical miles could also be held to be an ocean-going vessel classifiable as cargo ship under Heading 8901, counsel argues. 8. We have considered the submissions. The original authority found that the vessel only transhipped cargo from port area to the bulk carriers and vice versa. In another place of its order, that authority found that the vessel was not competent to carry cargo on its own but could only transfer cargo from one to other barge/place with the help of cranes fitted thereon. Yet in a third place, it was found that handling of cargo in docks and putting it on the big ships and carriers was its main function. By and large, the ratio of the decision of the original authority is that navigability of the vessel is subsidiary to its main function. The importer's contention to the contra was rejected.....