TMI Blog2018 (11) TMI 931X X X X Extracts X X X X X X X X Extracts X X X X ..... pter heading 90.31 - appeal dismissed - decided against Revenue. - C/317/2010 - A/31460/2018 - Dated:- 26-10-2018 - Mr. M.V. RAVINDRAN, MEMBER (JUDICIAL) AND Mr. P.V. SUBBA RAO, MEMBER (TECHNICAL) Shri A.V.L.N.Chary, Superintendent for the Appellant. Shri Shankar Bala, Chartered Accountant for the Respondent. ORDER 1. This appeal is filed by Revenue against Order-in-Appeal No. 24/2009(V-II)CUS, dated 22.10.2009. 2. The relevant facts that arise for consideration are, the respondents herein floated an enquiry for Cutter Suction Dredger and received quotation for the same from overseas supplier with additional features and optioned for measuring the quantity of dredged item for an incremental price. Respondents place ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after taking us through the entire records submits that the first appellate authority has wrongly held that it is not a mandatory requirement to follow the chapter notes for classification of goods is incorrect; the exemption notification in this case is with reference an item in the schedule to Customs Tariff Act and it exempts all goods fall under Chapter Heading 8905 1000 and if an item is not classifiable under the said chapter, then the exemption notification cannot be extended; it is a well settled position of law that exemption notification is an exception and with reference to first schedule, it has to be considered with the chapter notes. IT is his submission that the items which is covered under 8905 1000 is only Dredgers and not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supplied by the manufacturer as an in built part of the entire system of the dredging equipment by duly fitting in the piping section towards the discharge side of dredged material. The function of the production meter is to measure the production quantity i.e. the dredged material which enable the operator to adjust the other parts of the dredger i.e. cutter, pump etc. according to the requirements. The production meter is so integrated with the dredging equipment that it cannot be dismantled normally and even it is dismantled it cannot be used for any purpose other than for use as a measuring equipment in dredging operation. IT is customized for use as integral part of this type of dredgers. Hence, by its physical integration and also by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erence to a dredger, in Tariff subheading 890510000 of the Customs Tariff, for this very simple reason, has always to be construed as a reference to a dredging system. For doing so, there need not be any specific prescription in the chapter notes, section notes etc. for there could be no room or cause for ambiguity on understanding of a straight issue as the present one. I find the observation of the original authority, to the effect that, for arriving at such a conclusion specific prescription in the chapter notes, section notes etc., is a mandatory requirement does not reflect the contemplation of the law in this regard. I find that insistence on those lines as was done by the original authority, could only breed perverse and inherently c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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