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2020 (3) TMI 1261 - KARNATAKA HIGH COURTLevy of Entry Tax - dredgers - ocean going vessels/ships - Machinery or not - Karnataka Tax on Entry of Goods Act, 1979 - Whether the dredger would partake the character or definition of a machinery as defined under Entry 52 of 1st Schedule of the ‘KTEG Act’ or otherwise? HELD THAT:- 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.[1986 (9) TMI 333 - CEGAT, NEW DELHI], whereunder the Tribunal had held that “dredgers” are to be considered as “ocean going vessels” against which order a Civil Appeal No. 5/87 [1991 (55) E.L.T. A33 (S.C.)] had been filed by the Collector of Customs, Bombay and the said appeal came to be withdrawn by order dated 7-5-1991. The statutory authorities under different enactments have consistently held that ‘dredgers’ are to be considered as “ocean going vessels”. In fact, the dredger which has been registered as a ship under the Merchant Shipping Act, 1958 has also been recognized by the Income Tax Department as a ship. Thus, the question has to be answered in favour of the respondent-assessee and against the petitioner-Revenue by arriving at a conclusion that ‘dredgers’ are ‘ocean going vessels i.e., ship’ and it cannot be termed, considered or held as “machinery” referable to entry 52 of 1st schedule of KTEG Act - revision dismissed.
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