2008 (9) TMI 857 - AT - Central Excise

Stay/Dispensation of pre-deposit - National Calamity Contingent Duty (NCCD) - Chassis for Multi-axle Tipper and Concrete Mixer Trucks - Appellants claimed classification of goods under sub-heading 8706.42 of Central Excise Tariff, whereas, Department contended the same classifiable under sub-heading 8706.49 ibid, and as such, subject to levy of NCCD @ 1% under Section 136 of Finance Act, 2001

Summary

Issues involved:
Classification of chassis under Sub-heading 8706.42 or 8706.49 for levy of National Calamity Contingent Duty (NCCD).

Detailed Analysis:
The Appellant argued that chassis for "All Terrain Heavy Duty Multi-axle Tipper and Concrete Mixer Trucks" should be classified under Sub-heading 8706.42 as they are meant for vehicles under Sub-heading 8704.20, with no NCCD levy. The Department contended chassis should be under Sub-heading 8706.49, attracting 1% NCCD, as per Verification Reports and HSN Explanatory Note indicating classification under Sub-heading 8704.30. The Department was unaware of the basic excise duty classification under Sub-heading 8704.20.

The Tribunal examined the Finance Act, 2001, noting NCCD levy under Section 136 and the Seventh Schedule. Noting the Schedule adopts Central Excise Tariff Act definitions, the Tribunal found Entry 8706.49 lacked specificity, not mentioning chassis. Despite merit in Appellant's arguments, the absence of specified goods in the Schedule led the Tribunal to conclude no NCCD was leviable on the chassis, as per Section 136 requirements.

The Tribunal waived pre-deposit requirements during the appeal, allowing either party to seek an early hearing due to the issue's significance. The judgment emphasized the necessity of goods' specification in the Seventh Schedule for NCCD levy authority, ultimately ruling in favor of the Appellant regarding the chassis classification and NCCD liability absence.