1990 (4) TMI 129 - AT - Central Excise

Summary

Issues: Classification of tyres for front-end Loaders and vehicles/equipments for mounting cranes under Tariff Item 16-III CET as claimed by the assessee or Tariff Item 16-I(i) CET as claimed by the Department.

Analysis:
1. The appellants argued that front end loaders and cranes are not motor vehicles but material handling equipment, not used for transportation. They contended that T.I. 16-I(i) covers only transportation vehicles, not material handling equipment. Reference was made to a case where material handling equipment was treated as machinery for Customs purposes. The broad interpretation of the term "equipment" was challenged, emphasizing that if intended broadly, all tyres would fall under T.I. 16-I(i). The definitions of "vehicle" and "equipment" were discussed to support the argument that front end loaders and cranes do not primarily function as vehicles, ruling out classification under 16-I(i).

2. The Department argued that the vehicles in question are material handling equipment designed for off-road use, hence classified as vehicles. It was emphasized that the term "equipment designed for use off road" focuses on design, not actual use. Precedents were cited where similar equipment was classified as vehicles. Reference was made to technical definitions of vehicle and equipment to support the classification under Tariff Item 16-I(i).

3. The Tribunal noted that front end loaders and cranes are material handling equipments capable of moving on and off-road. The vehicles have specific features like engines, travel speeds, and controls indicating their design for off-road use. The definitions of "vehicle" from technical dictionaries were cited to clarify that these vehicles are self-propelled wheeled vehicles for on or off-road use.

4. The Tribunal interpreted Tariff Item 16-I(i) as covering tyres for vehicles or equipment designed for off-road use. It was emphasized that the focus is on the design of the equipment, not its actual use. As the front end loaders and cranes were designed for off-road use, their tyres fell within the scope of Tariff Item 16-I(i). The contention regarding the broad interpretation of the term "equipment" was dismissed.

5. The Tribunal concluded that the tyres in question are classifiable under Tariff Item 16-I(i) and upheld the Department's classification. The appeal was dismissed, affirming the impugned order.