2005 (12) TMI 500 - AT - Central Excise

Summary

Issues: Classification of Tata Sumo Ambulance Vehicle under Central Excise Tariff sub-heading 8702.10 or 8703.90.

Analysis:
1. The disputed period in the appeals is from September 1999 to May 2000, concerning the classification of a Tata Sumo Ambulance Vehicle. The appellants argue for classification under sub-heading 8702.10, while the lower authorities classified it under sub-heading 8703.90.

2. The key point of contention is the vehicle's capacity, as it can carry 8 persons when the patient is not on a stretcher and 4 persons when the patient is on a stretcher. The department argues that since it can only carry 4 persons in the latter scenario, designed for such use, it should be classified under sub-heading 8703.90.

3. A similar case, CCE, Jalandhar v. Swaraj Mazda Ltd., where the Tribunal classified an ambulance under heading 87.02, supports the appellants' argument. The department's appeal against this decision was dismissed by the Supreme Court on 16-7-2005, reinforcing the Tribunal's classification.

4. In line with the precedent set by the Tribunal in the Swaraj Mazda case, the Tribunal rules in favor of the appellants, classifying the impugned vehicles under sub-heading 8702.10. Consequently, the impugned orders are overturned, and the appeals are allowed, favoring the appellants.