2004 (12) TMI 144 - AT - Central Excise

Summary

Issues involved: Classification of chassis of vehicles under the Central Excise Tariff, determination of seating capacity for ambulances, reliance on certificates for classification, valuation of chassis for independent buyers.

Classification of chassis: The Revenue appealed against the Commissioner of Central Excise's order classifying chassis under heading 8706.29 of the Tariff. Revenue argued that ambulances using these chassis, with unfolded stretchers, could carry less than 12 persons, falling under 8702.10 of the Tariff. However, the Commissioner relied on a certificate from the Vehicle Research and Development Establishment stating that ambulances could carry 13 persons, excluding the driver. The Tribunal upheld the Commissioner's decision, noting that the seating capacity determined by the certificate was over 12, thus classifying ambulances under 8702.90 of the Central Excise Tariff and chassis under 8706.29.

Seating capacity determination: The Tribunal emphasized the importance of certificates issued by authorities like the Vehicle Research and Development Establishment for determining seating capacity. It highlighted the relevance of the Board's Budget instruction, 1996, which allowed ascertaining seating capacity from registration certificates or compliance certificates issued by relevant authorities. Since the certificate provided by the Establishment indicated a seating capacity exceeding 12, the Tribunal found no error in classifying ambulances under 8702.90 and chassis under 8706.29.

Valuation and clearance: The Tribunal also addressed the issue of valuation, noting that the respondents were selling the same chassis to independent buyers at the same price. Consequently, the Tribunal found no fault in the Commissioner's decision regarding valuation. As a result, the appeal by the Revenue was dismissed based on the consistent pricing for the chassis sold to independent buyers.