Ocean-going vessel exemption depends on the dredger's true character, not tariff classification, under customs notification.

Entitlement to exemption under Notification No. 262-Cus/58-Cus. was treated as turning on the dredger's true character as an ocean-going vessel, not on its tariff classification under Heading 8905.10. The vessel's capability and use for navigation, including self-propelled movement and suitability for ocean travel, were accepted as relevant attributes for applying the notification. The earlier connected decision on the same goods and notification was followed, and tariff classification was held not to control the exemption question. The dredger was therefore regarded as an ocean-going vessel and the exemption was allowed in favour of the assessee.

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Issues: Whether the imported dredger was entitled to exemption under Notification No. 262-Cus/58-Cus. as an ocean going vessel, notwithstanding its classification under Tariff Heading No. 8905.10.

Analysis: The exemption notification was treated as governing the entitlement independently of the tariff classification. The dredger's capability and use for navigation, including movement under its own power and its suitability for ocean travel, were accepted as relevant to its character. The earlier connected decision on the same goods and notification was followed, and the classification point was held not to control the exemption question. The reasoning applied the principle that the true nature of the vessel for the notification must be determined from its attributes and function in context.

Conclusion: The dredger was held to be an ocean going vessel and was entitled to the benefit of the exemption notification, in favour of the assessee.

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