2015 (1) TMI 627

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....und. We would notice facts as arising in Tax Appeal No. 1126/2014. 2. The department has filed this appeal challenging the judgement of the Customs Excise & Service Tax Appellate Tribunal ("the Tribunal" for short), dated 3-3-2014 raising the following questions for our consideration : "(A) Whether the Tribunal committed error in interpreting Rule 26 of Central Excise Rule, 2002 while setti....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....igational equipments. The Tribunal while upholding the stand of the department on the correct classification of the goods, nevertheless, held that there would be no reason for imposing personal penalties. 4. In the order, the Tribunal has discussed the taxability of goods at considerable length and come to the following conclusion : "It can be noticed from the various documents on record th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ht in place. We do not agree with the proposition made by the ld. Counsel, as in our considered view, hull which has come into existence in WBB's premises, by any stretch of imagination could not have been used for any other floating structure other than a yacht. The essentiality of constructing a yacht has been laid down by the hull and super structure built by M/s. WBB. The argument of the ld. c....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... and the classification as done by the adjudicating authority has to uphold." 5. However, with respect to penalty, the Tribunal accepted the stand of the manufacturer that it had bona fidely believed that hulk cleared by the manufacturer would be classified under the Chapter Heading 89.06 and not 89.03. It was not a case of deliberate misdeclaration. In the conclusion, the Tribunal on the qu....