1999 (10) TMI 306 - AT - Central Excise

Summary

Issues involved:
Classification of the mobile cementing unit under Heading 84.13 or Heading 87.05 of the Schedule to the Central Excise Tariff Act (CETA).

Analysis:
The appeal filed by M/s. Bharat Pumps & Compressors Ltd. raised the issue of whether the mobile cementing unit should be classified under Heading 84.13 as claimed by them or under Heading 87.05 as confirmed by the Collector (Appeals). The Appellants argued that the unit is a complex machinery designed for cementing operations during oil exploration, emphasizing that it is not a motor vehicle but a specially designed equipment mounted on a truck chassis for a specific purpose. They highlighted that the unit was granted an industrial license for manufacturing cementing/pumping units and does not manufacture vehicles. The Appellants contended that the unit's prime function is pumping cement slurry, which aligns with Heading 84.13. They also referred to H.S.N. Explanatory Notes to support their classification argument and cited relevant case laws to strengthen their position.

On the other hand, the Respondent argued that the mobile cementing unit falls under Heading 87.05, which covers special purpose motor vehicles, based on the specific design of the chassis for the unit's purpose. They referenced a previous case to support their classification stance.

After considering the submissions from both sides, the Tribunal analyzed the H.S.N. Explanatory Notes, which clarified that Heading 87.05 covers motor vehicles with non-transport functions but excludes self-propelled machines where the chassis and working machines are specially designed for each other. The Tribunal noted that the cementing unit is mounted on a truck chassis that cannot be altered for other commercial uses, supporting the Appellants' argument. Additionally, they referred to Explanatory Notes below Heading 87.16 to exclude machines on wheeled chassis designed to be towed from Heading 87.16, further supporting classification under Heading 84.13. Citing previous cases, the Tribunal ruled in favor of the Appellants, classifying the mobile cementing unit under Heading 84.13 of CETA.