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Classification of transhippers as ocean-going vessels for Customs duty exemption. Analysis: The judgment pertains to the classification of transhippers as ocean-going vessels for Customs duty exemption. The Division Bench considered whether vessels converted into transhippers, primarily used for topping up bulk carriers in Indian territorial waters, could be deemed ocean-going vessels. The Court acknowledged that the vessels were structurally and technically capable of navigating the high seas and were certified as such. Despite occasional trips to foreign ports, the primary purpose of these vessels was for topping up operations in Indian waters. The owners argued that the vessels should be considered ocean-going based on their capabilities, while Customs authorities contended that the end purpose was crucial for the exemption. The Court found merit in the owners' submissions, stating that an ocean-going vessel is defined by its equipment, crew, and licensing, regardless of actual usage. The transhippers did venture into the ocean for loading ore and during monsoons for cargo transport, meeting the criteria of ocean-going vessels. The judgment highlighted the need for a bench of three learned Judges to reconsider the relevance of end-use and the satisfaction of end-use requirements. Consequently, the appeals were to be presented before the Chief Justice for further directions.
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