1998 (7) TMI 235 - AT - Central Excise

Summary

Issues:
Classification of tractors supplied to M/s. Indian Airlines for hauling baggage trolleys under sub-heading 8701 or 8709.

Analysis:
The appeal challenged the Order-in-Appeal passed by the Collector (Appeals) regarding the classification of tractors supplied by the appellants to M/s. Indian Airlines for hauling baggage trolleys at the airport. The main contention was whether the tractors should be classified under sub-heading 8701 or 8709. The appellants argued for classification under 8701, while the revenue held that it should fall under sub-heading 8709 due to specific modifications carried out on the regular tractors.

The Tribunal examined the modifications and referred to the HSN notes as there were no specific notes in the Central Excise Tariff Act, 1985. The HSN descriptions of sub-headings 8701 and 8709 were considered. Sub-heading 8709 pertains to works trucks and tractors used on railway station platforms, which have distinguishing features making them unsuitable for passenger or goods transport on public roads. The HSN notes highlighted specific design features and characteristics of vehicles falling under this sub-heading.

The Tribunal analyzed the features of the disputed tractors in comparison to the HSN notes. It was noted that the tractors did not possess special design features making them unsuitable for road transport, nor did they meet the speed or turning radius criteria specified for works trucks under sub-heading 8709. The modifications made, such as the exhaust type, clutch plates, bumper, driver seat, and painting, were considered minor and did not alter the fundamental nature of the tractors.

Based on the analysis, the Tribunal concluded that the tractors with minor modifications did not qualify as works trucks under sub-heading 8709 but were tractors falling under sub-heading 8701. Therefore, the impugned order was set aside, and the appeal was upheld with consequential relief granted to the appellants.