2019 (7) TMI 1707 - AT - Central Excise

Classification of goods - vehicles Mahindra Bolero Camper and its variants - whether the vehicles Mahindra Bolero Camper and its variants manufactured by the appellant are classifiable under Central Excise Tariff Heading 8703 or Central Excise Tariff Heading 8704? - HELD THAT - The vehicles in dispute are meant for carrying both persons and goods. There are two rows of seats in which persons can comfortably sit in an air conditioned environment and there is a place at the back for carrying goods as well - In the case of MAHINDRA MAHINDRA LTD VERSUS CCCE ST, HYDERABAD-I 2018 (4) TMI 1315 - CESTAT HYDERABAD after detailed discussions, it has been held that the goods in question are classifiable under 8704 Motor vehicles for transport of goods . Appeal allowed.

Summary

Issues: Classification of vehicles under Central Excise Tariff Heading 8703 or 8704.

Analysis:
1. The appeal was filed by the Revenue for Early Hearing due to pending status since November 2017 involving a significant revenue of ?114 crores, with eight appeals on the same issue already decided in favor of the appellant for different periods. The issue revolved around the classification of vehicles "Mahindra Bolero Camper" under Central Excise Tariff Heading 8703 or 8704.

2. The Tribunal allowed the application for early hearing and decided to take up the appeal for a decision after considering that previous appeals on the same issue were already decided in favor of the appellant. The key question was whether the vehicles in question, designed for carrying both persons and goods, should be classified under Central Excise Tariff Heading 8703 (motor vehicles for transport of persons) or 8704 (motor vehicles for transport of goods).

3. The Revenue argued for classification under 8703, considering the vehicles as passenger goods, while the appellant contended that they should be classified under 8704. Referring to Chapter Note 6 of the chapter, the Tribunal noted that "station wagons" are vehicles that can be used for transporting both persons and goods without structural alteration.

4. After detailed discussions, the Tribunal upheld the classification under 8704, i.e., "Motor vehicles for transport of goods," for the vehicles in question. Given the previous decision in favor of the appellant on the same issue, the impugned order was set aside, and the appeal was allowed with consequential benefits.

5. Consequently, the Tribunal allowed the application for early hearing, set aside the impugned order, and granted the appeal in favor of the appellant, aligning with the previous decisions on the matter. The operative part of the order was pronounced in court at the conclusion of the hearing.