2007 (11) TMI 113 - AT - Central Excise

Findings of the C.(A) that CH 8705 is more specific than CH 8426 for classifying hydraulic truck mounted mobile crane is rejected - mere description of the project as truck crane, truck mount crane in the invoices, packing lists, bills of lading cannot be the main guiding factor in determining the classification - Even in these descriptions the emphasis is to the crane aspect of the product & not to the truck aspect - covered by the exclusion clause of CH 8705 CH 8426 appears reasonable

Issues Involved:
1. Classification of "used Hydraulic Truck Mounted Mobile Cranes" under Chapter heading 8426.19 or 8705.

Detailed Analysis:

1. Classification of "used Hydraulic Truck Mounted Mobile Cranes":

The appellant imported goods described as "used Hydraulic Truck Mounted Mobile Cranes" and claimed classification under Chapter heading 8426.19. However, the goods were provisionally assessed and subsequently finalized under Chapter 8705. The issue revolves around whether these cranes should be classified under Chapter 84 (which includes various types of cranes) or Chapter 87 (which includes special purpose motor vehicles).

Appellant's Arguments:
- The product is a single equipment where the crane portion is integrally attached to the chassis and is self-propelled.
- Before using the crane, the vehicle must be made stationary using outriggers.
- Hydraulic Truck Cranes are different from Crane Lorries and are not primarily load movers as they become stationary during operation.
- The cranes are specially designed to be placed on outriggers for loading and unloading operations by their own power.
- The product meets the exclusion criteria of the Harmonized System Nomenclature (HSN) for Chapter 87.05.

Respondent's Arguments:
- The Commissioner (Appeals) classified the cranes under 8705, arguing that the product is described in invoices and other documents as 'truck crane' or 'truck mounted crane'.
- The crane portion is not self-propelled, and the prime mover is the engine attached to the chassis.
- The product is not a "mobile lifting frame, straddle carrier, or works truck fitted with a crane" as described in Chapter 84.26.

Tribunal's Analysis:
- The Tribunal examined whether the product is primarily a crane that is mobile or a vehicle fitted with a crane.
- Chapter 84 generally refers to various machines, including different types of cranes, while Chapter 87 covers special purpose motor vehicles.
- The product in question is primarily designed to work as a crane with mobility being an additional feature facilitated by the motor vehicle chassis.
- The integration of the crane with the chassis is substantial, making the source of power for the crane operation immaterial.
- The product should be considered as a crane which is mobile rather than a vehicle fitted with a crane.

Conclusion:
- The Tribunal found that the product is an integrated unit where the predominant function is that of a crane. Therefore, it should be classified under Chapter heading 8426.
- The Tribunal did not uphold the findings of the Commissioner (Appeals) that Chapter heading 8705 is more specific for the classification.
- The HSN notes for heading 8705 exclude self-propelled machines where the chassis and working machine are specially designed for each other and form an integral mechanical unit, supporting the classification under 8426.

Judgment:
- The appeal was allowed, and the product was classified under Chapter heading 8426 with consequent relief to the appellant.

*(Pronounced in Court on 20-11-2007)*

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