TaxTMI 
TaxTMI 
2020 (3) TMI 1261
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....ellate Tribunal was right in law in holding that the dredgers are ocean going vessels i.e., ships and it cannot be called as machinery? (ii) Whether in the facts and circumstances of the case, the Hon'ble Karnataka Appellate Tribunal was right in law in holding that the dredgers is a ship or vessel based on the registration under the Merchant Shipping Act, 1958 and also described under Chapter 89 of the Central Excise Act? 2. The respondent herein is a Government of India undertaking constituted for providing services at all sea ports in India to carry out dredging operations for removal of sand, silt and other debris accumulated at the sea bed so as to facilitate unimpeded and unhampered ingress and egres....
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.... is to be construed as a ship and the definition extended to ship or vessel cannot be applied to the dredgers; they do not partake the character of ships or vessels and on account of the fact that machinery is mounted in a specially built craft for transportation purposes through high sea for usage of removal of silt deposited in the approach channel of the port, dredgers cannot be construed as a ship, but on the other hand, it is to be construed as machinery as defined under entry 52 of 1st schedule of the KTEG Act. He would also contend that as per the definition of Webster's Dictionary, 'dredger' is a machine for removing earth usually by buckets on an endless chain or a suction tube; and 'ship' is a large sewaging vessel or a sailing ve....
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....cter or definition of a machinery as defined under Entry 52 of 1st Schedule of the 'KTEG Act' or otherwise?" Entry 52 of 1st Schedule of KTEG Act reads : "52. Machinery (all kinds) and parts and accessories thereof but excluding agricultural machinery." (iii) 'Dredger' which is the subject matter of this revision petition, is undisputedly registered under the Merchant Shipping Act, 1958 ('Act' for short). Section 3(18) of the Act defines "Indian Ship" as under : "3(18) "Indian Ship" means a ship registered as such under this Act and includes any ship registered at any port in India at the commencement of this Act which is recognized as an Indian ship under the proviso to sub-section (2) of....
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....would disclose that dredger which has been deployed by the respondent to carry out dredging operations for removal of sand, silt and other debris accumulated at the sea-bed it cannot be gainsaid by Revenue that "dredger" would fall within the definition of "machinery". In fact, under Chapter 89 of the Central Excise Act, under the head "ships, boats and floating constructions", dredgers are classified with Exim code 8905.10.00. The expression 'dredge' has been defined in Chambers dictionary as under : "dredge, drej, n. a bag-net for dragging along the bottom to take oysters, biological specimens, mud etc.: a machine for deepening a harbour, canal, river, etc., for excavating under water or on land, or for raising alluvial deposits ....
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....3 SCC 480 = 1986 (25) E.L.T. 473 (S.C.) pressed into service would lean in favour of assessee rather than Revenue, inasmuch as, even applying the test of commonality to determine whether an article for subjecting it to tax, the only irresistible conclusion which can be drawn is that the 'dredger' is also a sea going vessel or a floating craft which is self propelled used in the sea for the purpose of de-silting, removal of mud etc., as already noticed hereinabove. In fact, under the Central Excise Act similar issue came up for consideration before the Appellate Tribunal in the matter of Collector of Customs, Bombay v. Dredging Corporation of India Ltd., whereunder the Tribunal had held that "dredgers" are to be considered as "ocean going....