Inclusive interpretation of exemption notification extended customs relief to drill ship repair imports under Notification No. 211/83.

An exemption notification defining "ocean-going vessels" by using the word "includes" was construed expansively rather than restrictively. The inclusive Explanation covered specified craft such as tugs, dredgers and fire-floats, showing that the term was not confined to its ordinary narrow meaning. On that interpretation, a drill ship was treated as falling within the scope of the notification, so components imported for its repair qualified for customs exemption under Notification No. 211/83. The departmental challenge therefore failed and the exemption was upheld.

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Issues: Whether components imported for repair of a drill ship were eligible for customs exemption under Notification No. 211/83 on the footing that the drill ship was an ocean-going vessel.

Analysis: The Explanation to the notification used the expression that ocean-going vessels "includes" specified categories of vessels, which indicated an enlarging and not a restrictive definition. The listed examples also covered vessels such as tugs, dredgers, fire-floats and similar craft that may not be ocean-going vessels in a narrow ordinary sense. On that basis, the definition was treated as extensive for the purpose of the exemption, and the drill ship was held to fall within its ambit.

Conclusion: The components imported for repair of the drill ship were eligible for exemption under Notification No. 211/83, and the department's appeal failed.

Final Conclusion: The exemption was upheld by applying the inclusive scope of the notification's Explanation, and the departmental challenge was rejected.

Ratio Decidendi: Where an exemption notification defines a term by using "includes", the expression is to be given an expansive meaning for that notification and may extend to vessels not ordinarily covered by the term.

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