1987 (2) TMI 255 - AT - Central Excise

Summary

Issues Involved:
1. Classification of imported dumpers, loaders, and tractors.
2. Determination if these items are mining machinery under Item No. 72(18) with Exemption Notification No. 117-CUS dated 20.8.1955 or conveyances under Item No. 75 of the First Schedule to the Customs Tariff Act.

Detailed Analysis:

1. Classification of Imported Dumpers, Loaders, and Tractors:
The primary issue revolves around whether the imported dumpers, loaders, and tractors should be classified as mining machinery under Item No. 72(18) with the benefit of Exemption Notification No. 117-CUS dated 20.8.1955 or as conveyances under Item No. 75 of the First Schedule to the Customs Tariff Act. The appellants argued that these items should be classified as mining machinery to avail concessional assessment.

2. Determination if Items are Mining Machinery or Conveyances:
The tribunal considered several precedents and evidence to determine the correct classification:

a. Precedents:
- Bombay High Court (V.M. Salgaocar v. Union of India): Dumpers, even if specifically built for carrying heavy iron ore in rough terrain, remain conveyances and cannot be classified as mining machinery under Item 72(18).
- Bombay High Court (Salgaoncar Engineers (Pvt.) Ltd. v. Union of India): Heavy duty dumpers, despite their technical contrivances, are fundamentally conveyances.
- Hindusthan Motors Ltd. v. Union of India (1980 E.L.T. 423): Rear dumpers used in rough terrain for short-distance haulage within mining areas are motor vehicles and not mining machinery.
- Supreme Court (Bolani Ores v. State of Orissa): Dumpers, rockers, and tractors are motor vehicles adapted for use on roads, even if used primarily in mining areas.
- Orissa High Court (Orissa Mining Corporation v. Joint Secretary, Ministry of Finance): Various items of machinery used for mining operations, including storage hoppers, were classified as mining machinery.

b. Tribunal's Observations:
- The tribunal noted that the decision of the Orissa High Court did not consider the Supreme Court's ruling in Bolani Ores and involved different machinery.
- The tribunal emphasized that the legislative intent should be deciphered from the words used in the statute, with no room for intendment or equity in taxing statutes.

c. Evidence Presented:
- The appellants presented brochures, affidavits, certificates, and advertisements from various sources, including Bharat Earth Movers and Hindusthan Motors, classifying dumpers as mining machinery.
- The tribunal observed that similar evidence had been considered in previous cases and found unconvincing.

d. Tribunal's Conclusion:
- The tribunal concluded that the dumpers, loaders, and tractors are fundamentally conveyances and not mining machinery. The classification by the lower authorities was upheld.

3. Specific Items:
- Wheel Loaders (Appeal No. 404): Not classified as mining machinery.
- Taxvactors (Appeal No. 405): Not classified as mining machinery.
- Crawler Tractors (Appeal Nos. 403 & 405): Not classified as mining machinery.

Final Judgment:
The appeals were dismissed, affirming the classification of the imported items as conveyances under Item No. 75 of the First Schedule to the Customs Tariff Act, and not as mining machinery under Item 72(18).