1994 (6) TMI 81 - AT - Central Excise

Summary

Issues:
Classification of water well drilling rigs under Heading 8705.00 or Heading 84.30.

Analysis:
The case involves the classification of water well drilling rigs manufactured by the appellants. The Department argues for classification under Heading 8705.00, pertaining to "special purpose motor vehicles," while the appellants contend for classification under Heading 84.30, which covers "moving, grading, levelling, scrapping, excavating machinery." The rigs consist of various models with similar manufacturing processes but differing in capacity and size. The hydraulic power pack powers all drilling and control functions, mounted on truck chassis with structural modifications to integrate the chassis with the drilling rigs.

The appellants reference a previous Tribunal order in a similar case, supporting classification under Heading 84.30. The Tribunal, after reviewing the arguments and the manufacturing process, agrees with the appellants. The Tribunal notes that the manufacturing process, including the integration of the chassis with the drilling rigs, supports classification under Heading 84.30. The Tribunal concludes that the goods cannot be separately used as a motor vehicle, leading to the correct classification under Chapter Heading 84.30, overturning the initial classification under Chapter Heading 87.05.

In light of the above analysis and following the precedent set by the previous order, the Tribunal rules in favor of the appellants, classifying the goods under Heading 84.30. The impugned order is set aside, and the appeal is allowed.