In Brief
The case concerns whether items imported with a Cutter Suction Dredger—including pipes, compressors, pumping units, and anchor boats—qualify as integral parts of the dredger and thus are entitled to customs duty exemption. The Appellate Commissioner found nine items were entitled to exemption. The Customs tribunal (CESTAT) reversed this, classifying them separately. The Supreme Court held that the test is not whether items have multiple uses, but whether they are essential for dredging. Without compressors and pipes, the dredger cannot function. The Court restored the Appellate Commissioner's order, allowing the exemption.
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