2010 (3) TMI 302 - AT - Central Excise

Motor Vehicle- The appellants manufacture Mobile Lifting Frame (popularly known as Hammar lift which can lift containers). The appellants have sought classification of the same under Heading 84.26. The Department has sought classification of the impugned goods under Heading 87.05 resulting in the impugned duty demand. The authorities below have confirmed classification of the impugned goods under Heading 87.05 and have also confirmed the duty demand against the appellants. Held that- explanatory note providing exclusion from the Heading 84.26 supports the department s view that the impugned goods cannot be classified under Heading 84.26 but under Heading 87.05 as a special purpose motor vehicle. We also find that the crane lorry arid other such special purpose vehicles are included under Heading 87.05 vide the explanatory note there under. In view of the foregoing, we uphold the classification of the impugned goods under Heading 87.05 as approved by the departmental authorities, and dismiss the appeal.

Summary

Issues: Classification of goods under Heading 84.26 or 87.05

In this judgment by the Appellate Tribunal CESTAT, Chennai, the issue revolves around the classification of 'Mobile Lifting Frame' under either Heading 84.26 or 87.05. The appellant sought classification under Heading 84.26, while the Department argued for classification under Heading 87.05, leading to a duty demand dispute. The key contention was whether the impugned goods should be considered a special purpose motor vehicle or a machine for lifting and handling under the respective headings.

Analysis:

The appellants manufactured a 'Mobile Lifting Frame' known as 'Hammar lift' used for lifting containers. The Department classified the goods under Heading 87.05, while the appellants sought classification under Heading 84.26. The authorities below confirmed the classification under Heading 87.05, resulting in a duty demand against the appellants. The competing entries under the two headings were compared, highlighting the distinction between special purpose motor vehicles and lifting machines.

The appellant's representative argued that the impugned goods were a combination of a crane and a truck/trailer designed for self-loading and transporting containers. They contended that the goods should be classified under sub-heading 84.26.12 based on the explanatory notes under Chapter 84 and 87 of the HSN. Reference was made to a previous Tribunal decision supporting the classification sought by the appellants.

On the other hand, the Department's representative argued against classification under Heading 84.26, citing an explanatory note that excludes machines mounted on tractors or motor vehicles proper to Chapter 87. They emphasized that machines mounted on automobile chassis or lorries are also excluded from Heading 84.26.

Upon reviewing the case record and the cited case law, the Tribunal differentiated the present case from the precedent. The Tribunal noted that the impugned goods in this case were primarily described as a distribution vehicle for short distances used for self-loading and transporting containers. The Tribunal highlighted the exclusion under Heading 84.26 for certain lifting or handling machines mounted on automobile chassis or lorries, which should be classified under Heading 87.05 as special purpose motor vehicles.

Ultimately, the Tribunal upheld the classification of the impugned goods under Heading 87.05 as approved by the departmental authorities, dismissing the appeal against the duty demand. The judgment provided a detailed analysis of the specific characteristics and functions of the goods to determine their appropriate classification under the relevant headings.