Order Date- 13 June 2022

Facts:

• The Appellant, M/s E-Factor Adventure Tourism Ltd., imported two used motor boats describing the same as “Excursion Boats” and filed Bill of Entry and classified the same under CTH 89011030 and have availed exemption in terms of Sl.No.551 of Notification No.50/2017–Customs.  
• The Bill of Entry was selected for first check examination and on the basis of examination of the report the department sought to classify the goods under CTH 89039200 and the provisional assessment was ordered to be finalized; differential duty of Rs.1,71,39,839/-, was confirmed, vide OIO. The order passed by the original authority was upheld by the impugned order.
• Learned Authorized Representative reiterates the findings of the OIO and OIA and submits that the boat was classified as yacht as per the registration in the country of origin i.e. Britain and there Being aggrieved, the appellant filed this appealwas no registration by Mercantile Marine Department (MMD).
• Being aggrieved, the appellant filed this appeal

Issue:

• Whether the department erred in classifying the boat as pressure yacht?

Order:

• The Tribunal observed that, it can be seen that the boat to be considered as a pleasure vessel or boat is to be owned and used by an individual or a body corporate for themselves or a group of people who are duly authorized or permitted. Whereas in the instant case, the boat is used for tourism purposes. 
• The Department of Tourism, Government of Andhra Pradesh, Visakhapatnam have certified that the boats are imported by the appellants for the purpose of creating excursions and itineraries in Vizag to facilitate development of promotion of tourism in adventure. This being the case, the Tribunal find that it is not open for the department to consider the boats to be pleasure yachts to be used by a person or group of persons.
• The impugned order, has erred in concluding that the imported boats are yachts classifiable under CTH 8903. Tribunal, hold that the same are classifiable under CTH 8901.