1980 (10) TMI 68 - CGOVT - Central Excise

Summary

Issues: Classification of goods for levy of countervailing duty under Central Excise Tariff.

In this judgment, the Government considered four revision applications concerning the classification of goods for the levy of countervailing duty under the Central Excise Tariff. The petitioners argued that the duty should be levied under Item 6(3) of the Tariff, relying on an Appellate order and a High Court judgment. They contended that the imported goods were specifically designed for use on rough terrain and were suitable for rock excavating, mining, and quarrying under severe conditions, limiting their use to earth-moving equipment. The High Court of Karnataka had remanded a similar case to the Deputy Collector for further examination. However, the High Court of Delhi, in a separate case, clarified that rear dumpers are considered motor vehicles under Item 34 of the Tariff, even if fitted with specialized equipment. The Delhi High Court emphasized that the primary function of these vehicles is haulage and that they are fit for use on public roads. The Government noted that dumpers have all the necessary components to run on public roads, making them suitable for such use, despite being used on rough terrain primarily. Therefore, the Government held that the goods in question were correctly classified under Item 19(1) of the Central Excise Tariff, rejecting the petitioners' request for reassessment under Item 16(3) of the Tariff. Consequently, all revision applications were rejected based on the classification of the goods for the levy of countervailing duty.