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”.
Also Read: https://newslaw.in/supreme-court/legal-analysis-of-claim-for-loss-of-profit-in-delayed-contract/
These were set out in paragraph 25 of the Appellate Commissioner’s order, which is extracted for easy reference: SI. The Appellate Commissioner had while granting relief, relied upon the previous order of the CESTAT reported as Boskalis Dredging India Pvt. Note 2(e) was interpreted to held that the parts – which the Appellate Commissioner held were essential to a Cutter Dredger, were separate articles. The Court on that occasion had relied upon previous rulings in Saraswati Sugar Mills vs Commissioner of Central Excise, (2014) 15 SCC 625). The Tribunal had after considering the various components and the relative functions, described their utility in the overall unit in the following terms: “From the definitions of various Dredgers as extracted above, we find that Dredging, no doubt, means excavation.
Referring to the British Standard Specification (BS 6349, Part- 5 L 199) we find that there are various types of Dredgers like Stationary Suction Hopper Dredger, Trailing Suction Hopper Dredger, Cutter Suction Dredger etc. It is this function of the Cutter Suction Dredger which involves the dredging as well as the discharging, which makes the Pipelines an essential part of the Dredger inasmuch as without these Pipelines the Dredger of the type in question will not be able to work properly, Para 4.4.1 of the British Standard Specification is being reproduced below for better appreciation;- “4.4.1 General”….. The discharge from the dredge pumps(s) passes over the stern (or opposite end the cutter) of the pontoon to a heavy hose or flexible coupling, to which is connected a floating pipeline (see A.
Pipelines fall into the following two categories.” From the above description of the Suction Dredger also, we find that Pipelines attached with the Suction Dredger forms an indispensable part of the main mother craft. The appeal is thus allowed.”
The Bill of Entry in the present case, describes the goods as “Cutter Suction Dredgers and Ta Hsing along with Standard Spares, Accessories, Pipes etc., including Multicats (2 Nos.) & Anchor Boat (1 No.); Dredging Pumping unit to be used with cutter suction dredger (2 Nos.)
Engine (2 Nos.)
along with Standard Spares & Accessories.”
In the order and appeal, the relevant portion of the inspection report of the Chartered Engineer was taken note of. Since most of the project site will not have a permanent power connection, hence the generators are deployed for providing power to the shore support work shop wherein welding, machining and illumination of the site and etc., The pumping stations are basically engine, driven centrifugal pumps which are used as a booster pumps to pump the slurries/sludge to a place away from the site. Likewise, the Appellate Commissioner allowed the claim for exemption in respect of steel angle plates, pipes, and wire mesh which was held to be useful for the erection of booster pump stations. 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.
As held earlier, each of the units which the CESTAT excluded (to which benefit had been granted by the Appellate Commissioner) are integral for the functioning of a Cutter Dredger.
Case Title: M/S DHARTI DREDGING AND INFRASTRUCTURE LTD. Vs. COMMISSIONER OF CUSTOMS AND CENTRAL EXCISE, GUNTUR (2023 INSC 184)
Case Number: C.A. No.-003005-003005 / 2010
