2004 (4) TMI 186 - AT - Central Excise

Summary

Issues: Classification of loader fabricated on tractor under Central Excise Tariff Act

In this appeal, the issue revolves around whether the loader fabricated on a tractor by the appellant falls under Heading 87.05 as a special purpose motor vehicle or under Heading 84.29 of the Central Excise Tariff Act, as confirmed by the Commissioner (Appeals) in the impugned order.

The appellant's argument is based on the contention that the loader fabricated on the tractor is specifically designed for picking up garbage and dumping it onto waiting transportation trucks, lacking the capacity to load and transport garbage itself. They rely on Note 3 to Chapter 87, which states that mounting equipment on a chassis amounts to the manufacture of a motor vehicle. They also refer to the Explanatory Notes of HSN below Heading 84.30, which exclude machines mounted on tractors from that heading. Additionally, they cite a previous decision classifying water well drilling rigs mounted on motor vehicle chassis under sub-heading 8705.20 instead of Heading 84.30.

On the other hand, the Departmental Representative argues that Heading 84.29, which covers self-propelled material handling equipment like loaders, applies to the loader fabricated on the tractor. They highlight that the appellant's own catalogue mentions the product's suitability for handling material in various industries, indicating its use as material handling equipment for tasks like clearing garbage and removing earth.

After considering both sides' submissions, the Tribunal delves into the relevant tariff headings and explanatory notes. It is noted that Heading 87.05 pertains to special purpose motor vehicles not primarily designed for transporting persons or goods. The Tribunal finds that the loader fabricated on the tractor qualifies as a special purpose motor vehicle under Note 3 to Chapter 87. The Explanatory Notes under Heading 84.30 are deemed applicable mutatis mutandis to self-propelled machinery under Heading 84.29, emphasizing that machines mounted on tractors are classifiable under Chapter 87. The Tribunal observes that the loader in question lacks the specific design elements outlined in the Explanatory Notes under Chapter 84.30, while the Explanatory Notes under Heading 87.05 mention lorries used for various purposes, including street cleansing. Consequently, the Tribunal classifies the impugned product under Heading 87.05, allowing the appeal in favor of the appellant.