TaxTMI 
TaxTMI 
2023 (3) TMI 1009
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....appellant had relied upon a certificate dated 27.02.2008 issued by the Chartered Engineer, based on the inspection of the goods. After verification of the Bill of Entry, the Assistant Commissioner was of the opinion that the multicats, M.S. pipes, imported dredging pumping units and other goods were classifiable under different tariff headings and were not entitled to exemption under the notification as "DREDGERS". 2. Feeling aggrieved, the assessee appellant preferred an appeal to the Commissioner of Customs (Appeals), Guntur (hereinafter "the Appellate Commissioner"). The Appellate Commissioner, by an order dated 30.06.2008, after elaborately analysing the functions of each individual part, granted relief and held that nine items were entitled to exemption. These were set out in paragraph 25 of the Appellate Commissioner's order, which is extracted for easy reference: SI. NO. DESCRIPTION OF THE GOODS SI. NO. OF ANNEXURE TO THE BILL OF ENTRY NO. 012/2007-08 dt. 22.02.08 1. Dredger Pumping units along with Engines and accessories with two spare engines spare pump casing, spare impeller and necessary accessories 1 2. Floating pipes/hoses 12 Mts length 750 MM Dia 2 ....
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....ponent of the Coke Oven Battery. It was submitted that by the same analogy, the pumping units, air compressors, pumps, pipes, wire mesh, steel angle plates and outward engine boat, all of which were granted the benefit of exemption notification, cannot be considered 'components'. It was besides urged that the Appellate Commissioner had disregarded Note 2 to Section XVII of the Act which had clearly excluded the articles in question; they had to be classified separately under the relevant heads. 8. The order of the Tribunal in Boskalis Dredging India Pvt. Ltd. (Supra) dealt with a similar aspect; the article imported which was in question in that case was a cutter suction dredger, much like the same one in the present case. The Tribunal had after considering the various components and the relative functions, described their utility in the overall unit in the following terms: "From the definitions of various Dredgers as extracted above, we find that Dredging, no doubt, means excavation. But there is definitely a need for continuous lifting of the dredged material and dumping the same at some other place. This can be done by a separate disposal system of discharge system can be a p....
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....pumps(s), the main engines and all ancillary engines, drives and equipment...... The discharge from the dredge pumps(s) passes over the stern (or opposite end the cutter) of the pontoon to a heavy hose or flexible coupling, to which is connected a floating pipeline (see A. 4.5.3) which in turn is connected to an onshore pipeline. Sometime an intermediate sea bed pipeline may be used." Para 4.4.2 of the British Standard Specification is also being reproduced below for better appreciation. "4.4.2. Pipelines Pipelines affect both the performance and operational efficiency of the Cutter Suction Dredger. The diameter of the pipeline has a direct bearing on the efficiency of the hydro transport process. Pipelines fall into the following two categories." 11. From the above description of the Cutter Suction Dredger also, we find that Pipelines attached with the Suction Dredger forms an indispensable part of the main mother craft. The cutter head, which may be electrically or hydraulically driven, encloses the suction intake of a centrifugal dredge pump. The cutterhead is mounted at the extremity of a fabricated steel structure, termed the "ladder", which also supports the su....
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....umping stations are basically engine, driven centrifugal pumps which are used as a booster pumps to pump the slurries/sludge to a place away from the site. Hence, the complete dredge spread which involves various boats, and other machineries and equipments has to be decided based on the location and type of the job involved." 10. The Appellate Commissioner then considered the previous order in Boskalis Dredging India Pvt. Ltd. (Supra) and dealt with each item separately. It was noticed that the dredger pumping units are essential for the cutter suction dredgers unlike in the case of hopper dredgers. Furthermore, the use of air compressors is also necessary to ensure a continuous supply of air to the booster pumps. The Appellate Commissioner took care to exclude some of the claims made by the appellant towards generators, consumables lathe etc. Likewise, the Appellate Commissioner allowed the claim for exemption in respect of steel angle plates, pipes, and wire mesh which was held to be useful for the erection of booster pump stations. 11. Note 2 of the Section XVII which has been relied upon in the present case by the revenue and the tribunal, is to the following effect: "T....