CBIC issues clarification
with respect to classification of remnant fuel & oils brought on board in
old ships / vessels for purpose of breaking; Notes that bills of entries
related to ship breaking are being provisionally assessed in view of dismissal
of Revenue appeal by SC against CESTAT order which held inter alia that ships /
vessels brought in for breaking up along with surplus fuel viz. MGO / HSD would
be classifiable under CTH 89.08; While CESTAT agreed with view of DGFT that
remnant fuel will have to be considered as an integral part of vessel / ship,
the DGFT subsequently changed its stand vide Notification No. 07/2015-20 and
reverted to earlier view that such fuel would be classified under Chapter 27;
DGFT also freed these items from policy restrictions when imported, brought on
board in old ships / vessels meant for breaking; In view thereof, CBIC states
that import of remnant fuels as referred to in Circular No. 37/96-Cus would not
be subject to any policy condition under Chapter 27 prior to May 20, 2015 and
in view of special dispensation by DGFT as on the date, accordingly, pending
provisional assessments will be finalized : CBIC Circular
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