1994 (7) TMI 158 - AT - Central Excise

Summary

Issues:
Classification of tyres for trailers of agricultural tractors under Central Excise Tariff, exemption under Notification No. 27/81, classification under Item 16 I(3)(i), classification under Item 16 I(1) of Central Excise Tariff, classification under Item 16III of Central Excise Tariff, classification of combined harvestor machines, applicability of off-the-road equipment classification, inter-changeability of tyres, interpretation of relevant Tariff Items.

Detailed Analysis:
The appeal was filed by the Collector of Central Excise, Bombay-I against an order passed by the Collector of Central Excise (Appeals), Bombay, regarding the classification of tyres for trailers of agricultural tractors. The respondents had classified the tyres under Item 16 I(3)(i) claiming exemption under Notification No. 27/81. The Assistant Collector classified the tyres under Item 16 I(1) of the Central Excise Tariff, reasoning that the tyres were fitted to combined harvestor machines, which were not trailers but equipment classified under Item 68. The Collector (Appeals) upheld this classification, stating that the tyres for combined harvestor machines do not fall under Item 16 I(3) and are not meant for off-the-road equipment like Excavators or Dumpers.

The Department contended that the tyres had the same specifications as motor vehicle tyres and that the combined harvestor was considered a trailer. The respondents argued that the combined harvestor was not off-the-road equipment, as typically understood, and that the tyres were not interchangeable with motor vehicle tyres since they were specifically designed for the harvestor manufactured by M/s. Vicon Ltd.

The Tribunal referred to a previous decision regarding the classification of tyres for power tillers, where it was held that such tyres fell under Item 16 III as "all other tyres." The Tribunal cited a government circular clarifying the classification of off-the-road tyres, emphasizing that tyres for vehicles like dumpers and earth-moving equipment were grouped together under a specific tariff item. It was concluded that the tyres for combined harvestor machines correctly fell under Item 16III of the Central Excise Tariff as "all other tyres" based on the previous decision and the nature of the equipment.

Therefore, based on the precedent and the interpretation of relevant Tariff Items, the order of the Collector (Appeals) classifying the tyres for combined harvestor under Item 16III of the Central Excise Tariff was upheld, and the Department's appeal was rejected.