Case Law Details
Dharti Dredging Vs Commissioner of Customs And Central Excise (Supreme Court of India)
Supreme Court held that without the compressors and the pipes necessary to pump the dredged material, the cutter dredger would cease to function as such. Accordingly, benefit of NIL rate of duty in terms of notification no. 21/2002-CUS dated 01.03.2002 duly available.
Facts- The appellant had imported a “Cutter Suction Dredger” along with other accessories and equipments including Pipes, Anchor Boats, Multicats, Dredging pumping units, Engines and other spares and accessories. These were classified under the Chapter Heading 8905 10 00 of the Customs Tariff Act, 1975. The appellant claimed the benefit of Nil rate of duty, in terms of notification no. 21/2002-CUS dated 01.03.2002. The appellant had relied upon a certificate dated 27.02.2008 issued by the Chartered Engineer, based on the inspection of the goods. After verification of the Bill of Entry, the Assistant Commissioner was of the opinion that the multicats, M.S. pipes, imported dredging pumping units and other goods were classifiable under different tariff headings and were not entitled to exemption under the notification as “DREDGERS”.
Conclusion- In the present case, in this Court’s view, the error committed by the CESTAT is that each of the excluded items has been treated as a separate part and not integral to the functioning of a Cutter Dredger. Without the compressors and the pipes necessary to pump the dredged material, the cutter dredger would cease to function as such. The other items, likewise, are integral parts of the Cutter Dredger, even though they might independently be utilized, for other purposes. The test is not whether multiple uses are possible but whether these parts are essential for the purpose of dredging in a Cutter Dredger.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
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