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Issues:
Classification of Van Mounted Heavy Weight Deflectometer and Analysis Computer Programme under Customs Tariff Act for exemption under Notification No. 21/2002-Cus. Analysis: 1. The appeal filed by M/s. Airport Authority of India questions the classification of the imported Van Mounted Pavement Testing Machine under sub-heading 9024.80 or 8705.90 of the Customs Tariff Act for exemption under Notification No. 21/2002-Cus. 2. The appellant's advocate argues that the equipment is specifically designed for testing pavements, not a special purpose motor vehicle under Heading 87.05, citing relevant HSN Explanatory Notes and legal precedents. The machine's integration with a Volks Wagon Van does not change its classification as a testing machine. The advocate highlights the importance of the decision's ratio and the need for consistency in classification decisions. 3. The advocate further contends that the Commissioner erred in relying on outdated decisions and that the testing machines fall under Heading No. 90.24 of the Tariff. Additionally, the advocate emphasizes the concessional duty rate eligibility under Notification No. 21/2002 for Runway Marking and Pavement Testing Machines. 4. The respondent argues that the equipment, when mounted on a vehicle, qualifies as a special purpose motor vehicle under Heading 87.05 due to its essential vehicle features. The respondent relies on the decision involving a Bulk Mix Delivery System to support the classification under Heading 87.05. The respondent also points out that the equipment's functional utility requires it to be mounted on a vehicle or trailer. 5. The appellant rebuts by emphasizing the integration of the machine and chassis, the functional use of the imported goods for pavement testing, and the relevance of the end use or function in classification decisions. The appellant cites relevant legal principles to support the classification under Heading 90.24. 6. The Tribunal examines the exemption Notification No. 21/2002-Cus, which includes "Runway Marking and Pavement Testing Machines" under List 20, irrespective of the Customs Tariff heading. The Tribunal finds that the impugned goods are primarily used for testing pavements at airports, as confirmed by technical specifications and expert opinions. Therefore, the benefit of the exemption notification is applicable, even if the goods are classified under Heading 87.05. 7. The impugned goods are deemed not liable for confiscation due to the misunderstanding regarding the importation of motor vehicles at specified ports. The Tribunal acknowledges the appellant's genuine belief regarding the nature of the imported product and previous clearance of similar items under a different chapter of the Tariff. Consequently, the impugned Order is set aside, and the appeal is allowed.
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