1999 (12) TMI 398 - AT - Customs

Summary

Issues:
Classification of mobile crane mounted on automobile chassis under Heading 87.05 as a special purpose vehicle.

Analysis:
1. The issue in this case revolves around the classification of a mobile crane mounted on an automobile chassis under Heading 87.05 as a special purpose vehicle. The primary consideration is whether there is sufficient integration between the lifting system and the chassis to warrant classification under a specific heading.

2. The appellant argues that there is a high degree of integration between the lifting system and the chassis, citing specific features such as the chassis dimensions exceeding those permitted by the Motor Vehicles Act and the necessity of using the chassis power to operate the crane effectively. These features indicate that the chassis plays a crucial role in the lifting operations of the crane.

3. The appellant further emphasizes that the crane's capacity to lift loads up to 140 M.T. aligns with the explanatory clause of the Harmonized System Nomenclature (HSN) under chapter 84.26, which states that cranes of this heading do not generally move under load. This underscores the primary function of the unit as a crane for lifting heavy loads.

4. Previous tribunal decisions cited by the appellant support the classification of similar items under Heading 84.26 based on their capacity and specialized design for lifting heavy loads. These decisions provide precedent for classifying the mobile crane in question as a crane under the Customs Tariff Act.

5. On the other hand, the respondent argues that there is not total integration between the chassis and the lifting machine, as required for classification under a specific heading. The respondent also relies on the HSN explanatory notes and judicial precedent to support the classification of the item under Chapter 87.

6. The appellate tribunal carefully examines the features of the lifting machine and the chassis, noting the substantial integration between the design of the chassis and the lifting machine. The tribunal concludes that the item cannot be considered merely a motor vehicle chassis with a mounted lifting machine but rather a specialized unit designed for safe and efficient lifting operations.

7. Based on the analysis of the facts and relevant legal provisions, the tribunal determines that the mobile crane mounted on the automobile chassis should be classified under sub-heading 8426.12 as a crane, not under Heading 87.05 as a special purpose vehicle. The tribunal sets aside the impugned orders and allows the appeal with consequential relief.

In conclusion, the judgment clarifies the classification of a mobile crane mounted on an automobile chassis, emphasizing the importance of integration, specialized design features, and capacity in determining the appropriate heading under the Customs Tariff Act.