9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (3) TMI 1261 - HC - VAT / Sales TaxLevy 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No. 5/87 1991 (55) E.L.T. A33 (S.C.) had been filed by the Collector of Customs, Bombay and the said appeal came to be withdrawn by order dated 7-5-1991.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.
Issues involved:
Interpretation of whether dredgers are considered ocean-going vessels or machinery for the purpose of tax assessment under the Karnataka Tax on Entry of Goods Act, 1979. Detailed Analysis: 1. Background and Assessment: The case involves a Government of India undertaking that carries out dredging operations using dredgers at sea ports. The Assessing Authority levied entry tax on the dredgers, considering them as machinery under the Karnataka Tax on Entry of Goods Act, 1979. The Appellate Authority affirmed this decision, leading to an appeal before the Karnataka Appellate Tribunal. 2. Contentions of the Petitioner: The Learned High Court Government Pleader argued that dredgers should be classified as machinery, not ships, as they are specially built craft with machinery for transportation and dredging purposes. Reference was made to the definition of "dredger" and "ship" from various sources to support the contention that dredgers do not qualify as ships. 3. Contentions of the Respondent: The Counsel for the respondent supported the Tribunal's decision, presenting documents to justify the classification of dredgers as ships. The respondent argued that the Tribunal's order should be upheld. 4. Legal Interpretation: The Court analyzed the definitions of "Indian Ship" and "ship" under the Merchant Shipping Act, 1958. It was noted that dredgers, registered under this Act, were recognized as ships. The Court also referred to the Central Excise Act and previous judgments that treated dredgers as ocean-going vessels. 5. Conclusion: After considering the arguments and legal provisions, the Court concluded that dredgers are to be classified as ocean-going vessels or ships, not machinery. The Court upheld the Tribunal's decision, stating that dredgers fall under the category of ships, boats, and floating constructions, as per the Central Excise Act. The Court dismissed the revision petition in favor of the respondent-assessee and affirmed the Karnataka Appellate Tribunal's order. 6. Final Order: The Court dismissed the revision petition, answered the substantial question of law against the petitioner-Revenue, and in favor of the respondent-assessee. The order of the Karnataka Appellate Tribunal was affirmed, and no costs were awarded.
|
