Pontoons – exemption withdrawn – not exactly
But what on earth is a pontoon? It is actually not on earth, but in the sea. In the case of Collector of Central Excise v. Mangla Engg. Works, the Tribunal defined Pontoons as
“Pontoon is not for venturing out into the sea in. It does not sail the ocean and its uses as a carrier is limited to lightering or as a ferry boat. Often it is no more than a barge, a flat bottomed boat, a lighter or even as a support for a temporary bridge over a river. Whatever it is used for it is not an ocean going vessel.”
The famous elusive Circular No. 1/2005 had classified pontoons under heading 8905. These pontoons were exempted under Notification No. 153/94-Customs, dated the 13th July, 1994 subject to the condition that they have been imported .along with ships .carrying imported goods, for the more speedy .unloading of imported goods and loading of export goods and they are re-exported within six months of the date of importation. Now this exemption is withdrawn. Does it mean that pontoons will suddenly attract customs duty? Not exactly! They are now unconditionally exempted under Notification No. 21/2002 which is amended.
All the above changes are contained in the NOTIFICATION No. dated 1.3.2006. It took four hours for DDT to understand this notification. How much time the poor Babus must have spent in piecing this together!