2002 (8) TMI 671 - AT - Customs

Summary

Issues Involved:
Classification of imported "Snow Blower Bucher Rolba 1500 STD" under sub-heading 8430.20 or Heading 87.05 of the Customs Tariff Act.

Detailed Analysis:

1. Appellant's Argument:
The appellant, M/s. Speedcrafts Ltd., argued that the impugned item should be classified under sub-heading 8430.20 as "Snow-ploughs and snow-blowers" based on the specific coverage of snow-blowers under this sub-heading. They emphasized Rule 3(a) of the Interpretative Rules, stating that the most specific description should be preferred. The appellant contended that the HSN Explanatory Notes are not necessary as the Tariff terms are clear and unambiguous. They referenced a Supreme Court decision to support their argument and cited a Tribunal decision that examining HSN Explanatory Notes is unnecessary when the Tariff provides specific provisions.

2. Exception in HSN Explanatory Notes:
The appellant highlighted Exception No. (b)(2) of the HSN Explanatory Notes for Heading No. 84.30, which clarifies that machines mounted on automobile chassis or lorries are classified under Heading 87.05 as special purpose motor vehicles. They argued that the snow-blower is a machine under Heading 84.30, not a vehicle, based on the location of propelling or control elements in the cab. They also pointed out that the impugned snow-blower is detachable and interchangeable, not built-in equipment as per the Explanatory Notes.

3. Revenue's Counter-Argument:
The Revenue, represented by the Respondent, relied on the Explanatory Notes of HSN to classify the impugned goods under Heading 87.05 as a special purpose motor vehicle. They emphasized that the snow-blower in question was a vehicle constructed solely for snow clearance and equipped with rotating blades driven by the vehicle engine. The Commissioner's findings supported this classification based on the common engine, drive, control, and built-in snow clearance attachments.

4. Judicial Analysis and Decision:
The Tribunal analyzed the rival headings of 84.30 and 87.05 along with the relevant HSN Explanatory Notes. They noted that the HSN Explanatory Notes exclude snow-blower vehicles with built-in equipment from Heading 84.30, while such vehicles are included in Heading 87.05. The Tribunal considered the Brochure details provided by the appellants, which described the snow-blower as a vehicle constructed solely for snow clearance with specific features. Based on the evidence and arguments presented, the Tribunal rejected the appeal and classified the impugned product under Heading 87.05 of the Customs Tariff Act.

This comprehensive analysis of the legal judgment highlights the key arguments, interpretations of relevant rules and notes, and the final decision reached by the Tribunal regarding the classification of the imported snow blower.