COMMISSIONER Vs. JAYESH C. MISTRY

JUDGEMENT

(1.) These appeals arise out of common background. We would notice facts as arising in Tax Appeal No. 1126/2014. 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 :

(2.) As can be seen the sole issue is with respect to the personal penalties imposed by the adjudicating authority but deleted by the Government. The issue pertains to correct heading under which a structure in the nature of a vessel constructed by the assessee M/s. WBB. According to the department, the construction would qualify as yacht. This was opposed by the manufacturer on the ground that the same cannot be termed as a yacht or vessel for pleasure as it lacked so many basic requirements like electrical wirings and other navigational 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.

(3.) In the order, the Tribunal has discussed the taxability of goods at considerable length and come to the following conclusion :