Ocean-going vessel exemption: pontoons were held outside the category because their function is not open-sea navigation.

The expression "ocean-going vessels" was construed in its ordinary commercial and functional sense for exemption purposes under the excise notification. Vessels such as liners, trawlers and sailing vessels are designed and adapted for navigation in the open sea, whereas pontoons are flat-bottomed craft mainly used as supports for temporary bridges, lightering or ferry operations. Their occasional use in water transport was held insufficient to make them ocean-going craft. On that basis, pontoons were held not to fall within the exemption category and were not entitled to the excise exemption.

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Issues: Whether pontoons could be treated as ocean-going vessels for the purpose of exemption under the relevant excise notification.

Analysis: The expression ocean-going vessels was construed in its ordinary commercial and functional sense. Vessels such as liners, trawlers and sailing vessels are designed and adapted for navigation in the open sea, whereas pontoons are flat-bottomed craft used mainly as supports for temporary bridges, lightering or ferry operations. Their capability and use do not make them vessels intended to venture into the sea as ocean-going craft. The reasoning that a pontoon might occasionally be used in water transport was found insufficient to bring it within the exemption category.

Conclusion: Pontoons are not ocean-going vessels and are not entitled to the exemption.

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