Sports Boats come within the ambit of Inflatable Craft under Customs and Tariffs Act: CESTAT [Read Order]

The Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) Mumbai held that sports boats come within the meaning of inflatable craft corresponding to heading 8901 of First Schedule to the Customs Tariff Act, 1975. The Bench consisted of Mr. Anil Choudhary, Member (Judicial) Mr. C J Mathew, Member (Technical). The appellant was represented by B B Mohite and the respondent was represented by Ramesh Kumar, Assistant Commissioner. The appeal was filed to set aside the order of the Assistant Commissioner stating that there is no distinction between sports and excursion boats hence there is no need for classification as inflatable craft under the Act.

The appellants contended that sports boats fell under the purview of sub-heading 8901 10 of the First Schedule to the Act. The Customs Authorities contended that the subheading covers all vessels for the transport of persons or goods corresponding to heading 8903 of First Schedule to the Customs Tariff Act, 1975 which, after excluding inflatables, canoes sailboats of all kinds and motorboats, other than outboard motorboats.

While deciding the present case CESTAT relied on the onus aspect of classification proposed by the Supreme Court. The classification must be based on an appropriate description of the impugned goods before being subjected to comparison with the declared classification. Yachts and other vessels for pleasure or sports rowing boats and canoes, correspond to inflatable craft at the tariff item level. The lower authorities failed to analyze the intent of the legislature under the heading 8903 of First Schedule to Customs Tariff Act, 1975 or of the descriptions corresponding to tariff items in heading 8903 of First Schedule to Customs Tariff Act, 1975. CESTAT also came to the conclusion that the decision of the lower authorities was not on merits and hence the contention of the appellant stands. Having said so the CESTAT set aside the order of the lower authorities and allowed the appeal.

To Read the full text of the Order CLICK HERE

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