Oil in Bunker Tanks of Engine Room is part of Ship for Customs Duty Determination: CESTAT

The CESTAT ruled that oil stored in the bunker tanks of a ship's engine room should be considered part of the ship for customs duty determination. The case arose from a dispute over whether the oil should be treated separately for duty assessment purposes. The tribunal held that since the oil is essential for the operation of the ship, it should be included in the ship's overall value when calculating customs duty. This decision has implications for shipping companies and others involved in the maritime industry, clarifying how various components of a ship are treated under customs law.