2014 (12) TMI 321

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.... manufactured and cleared from their factory at Aroor, a luxury vessel classifiable under CETH No. 89039200, by misclassifying the item under CETH No. 89011030 which is applicable to passenger vessels and attract nil duty. During the year 2009-10 the appellant had cleared goods falling under Central Excise Tariff Head No. 8903 valued at Rs. 2,88,74,821/- without payment of duty holding that the aggregate value of dutiable goods manufactured and cleared by them during the year is less than Rs. 150 lakhs and they were eligible for above exemption. 2. Proceedings initiated against the appellant have culminated in confirmation of duty demand for more than Rs. 11 lakhs with interest and penalty under Section 11AC of Central Excise Act 1944. 3.....

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....Kerala are basically for pleasure and not for mere transportation. It is difficult to assume that a person would go by backwater spending lot of money when cheaper transportation facilities are available. Further we also find that the reliance of the learned AR on the decision of the Tribunal in the case of Waterways Shipyard Pvt. Ltd. is also proper and we reproduce paragraph 13 of this order for better appreciation:                13. It is also noticed from the explanation below the sub-heading 8901 as HSN Explanatory Notes states that 'this Heading covers all vessels for the transport of persons or goods, other than vessels of Heading 89.03'.' From this explanation i....