1982 (6) TMI 54

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....otification. The claim of the petitioners as also their appeal were rejected by the lower authorities on the following grounds :- (1) Outboard motors are different from marine engines inasmuch as marine engines are of high H.P. whereas outboard motors are of small H.P. (2) Generally, marine engines are diesel engines whereas outboard motors are petrol engines. (3) Outboard motors are meant for fitment on small boats which are used for sports or pleasure purposes and these are two-stroke engines. On the other hand, marine engines are 4 stroke engines and these are installed on ships permanently whereas the outboard motors are detachable. (4) There is a separate notification No. 181-Customs of 1979 for outboard motors which exempt....

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....utches and power drives, and starting devices (electric or other). Change speed gears may also be fitted. The heading includes "outboard motors" for the propulsion of small boats in the form of a unit comprising an engine, shaft, propeller and a rudder". The heading includes "outboard". Relying on this Explanatory Note, they contend that outboard motors fall under the category of "engine". As regards the Notification No. 181-Customs of 79, the petitioners contend that Notification No. 281-Customs of 1976 ought to be interpreted independently without any reference to, or aid of, another notification. They have pointed out that the marine engines operate either on 4-stroke or 2 stroke, and 2 stroke engines take several forms and therefo....

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....as outboard motor is a 2-stroke engine. It is understood that most of the marine engines used as the main propulsion units are of 2-stroke design. Also, the size of marine craft should not stand in the way in defining an engine for marine propulsion purposes. The Government are also of the view that the argument of the lower authorities that generally marine engines are diesel engines whereas outboard motors are petrol engines is not sustainable, inasmuch as steam turbine, gas turbine, and nuclear-powered engines also constitute marine propulsion units. As such, the term marine engines could not be restricted to diesel engines, finally, although it is true that outboard motor system is a concept of a compact propulsion unit, nevertheless, i....