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TMI Blog2000 (10) TMI 488X X X X Extracts X X X X X X X X Extracts X X X X ..... sons (other than those of Heading No. 87.02), including station wagons and racing cars. 87.06 Chassis fitted with engines, for the motor vehicles of Heading Nos. 87.01 to 87.05. 8706.30 for the vehicles of Heading No. 87.03 3. The ld. Advocate Shri S.K. Bagaria appearing for the appellant submits that the said model is a motor vehicle minus only the rear portion of its body. It is a mono or chassis-less construction suitably reinforced with longitudinal runners and floor board incorporating the front body shell with two front doors, partial overhead roof, bulk head, wing balances, bonnet, mud-guards, wind screen, front bumpers with overriders and front seat having deepwell sprung upholstery with rubberised coir, spring case and seat cushions. 3.2 The said model is self-propelled motor vehicle and consists of similar mechanical assemblies as in other motor vehicles minus only the rear portion of the body. The rear portion of the body is left open so that the ultimate customer may get the same fabricated depending upon the use to which the vehicle is intended to be put by him such as ambulance, station wagon, pick-up van etc. 3.3 Alt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts of an electronic device, such as a radio, are mounted; usually the frame is designed to be connected to ground to reduce shock hazard and electrical noise. (f) The Americal Heritage - Dictionary of the English Language, Third Edition Chassis : 1. The rectangular steel frame, supported on springs and attached to the axles, that holds the body and motor of an automotive vehicle. 2. The landing gear of an aircraft, including the wheels, skids, floats and other structures that support the aircraft on land or water. 3. The frame on which a gun carriage moves forward and backward. 4. The framework to which the components of a radio, television, or other electronic equipment are attached. (g) Fundamentals of Motor Vehicle Technology by V.A.W. Hillier and F. Pittuck The chassis frame is the structural member to which the main components, such as engine, transmission and body are attached : i.e. it is the skeleton of the vehicle. 5. From the aforesaid Shri Bagaria concluded that it would be evident that chassis is altogether a separate and different product. In so far as DAC is concerned, it is neither a chassis by itself ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erally considered to be made up of two major assemblies, namely, a chassis and a body. The chassis contains all the major units necessary to propel the vehicle, direct its motion, stop it, and allow it to run smoothly over uneven surfaces. In a unit frame and body design it is difficult to separate chassis from body. The chassis of a late model passenger car is shown in Fig. 1-2. The frame is a rigid structure that forms a skeleton to hold all the major units together. The engine (shown in greater detail in Fig. 1-3) is mounted in the forward end of the frame and is connected to the clutch and transmission unit to form a compact power assembly. The unit is fastened to the frame through rubber-cushioned motor mounts to lessen the transfer of engine vibration. The transmission is connected to the final drive gears through the propeller shaft and universals. The final drive gears and differential are enclosed in a housing that is integral with a rearaxle housing, which in turn is attached to the frame through the rear springs. The two axles leading from the differential to the rear wheels revolve inside the rearaxle housing. The wheels and tire assemblies support the frame and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not as to how the goods would have been classified, if they would have been completed at the appellants factory itself. The goods have to be classified according to their condition in which they leave the manufacturer s factory. The DAC when cleared from the appellants factory were admittedly not complete motor vehicles or complete cars and the same could not be used for transportation of persons. The rear portion of the DAC was yet to be fabricated and even as per the appellants the same is fabricated by their customers as per their own requirements and the DSE in question may ultimately get converted into station wagon, ambulance, etc., after suitable body fabrication on the rear portion according to the needs of the concerned customer. From a common man s point of view also the said incomplete DAC cannot be considered to be a motor vehicle for transport of persons. As rightly observed by the Asstt. Commissioner no person who wants to purchase a motor vehicle will go to the assessee to collect the said DAC without a body made or fabricated on the same. As such we are of the firm view that the DAC in question will not get covered by Heading No. 87.03 which includes complete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the vehicle meant for the driver has been given shape and overhead roof will not convert the said DAC into a complete motor vehicle. The appellants have contended that the chassis only provide a wooden single seat, a temporary arrangement, to facilitate driving of the vehicle whereas in DAC there is front seat having deepwell spring upholstery. In our view this difference of providing wooden seat or upholstered seat or driving of the chassis will not alter the character of the chassis. In many of the chassis meant for trucks, etc., the cabin is provided for the driver. Similarly the difference drawn by the appellant that in DAC the stiff all steel body of the vehicle carry itself the total stress of loads and all components or sub-assemblies are directly fitted to such body, whereas the total stress and loads remain directly on the chassis frame, whereupon all major assemblies or sub-assemblies are mounted by bolting/welding will not convert the product in question into a motor vehicle inasmuch as the said difference pointed out by the ld. Advocate only represent the old concept and style of manufacture of chassis and the modern advanced technical concept. We also find that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o in various other documents. The appellants explanation that such chassis numbers are mentioned only for identification purposes is self-contradictory. On one hand the appellants are contending that there is no chassis on the DAC in question and on the other hand numbers are being provided by them. In fact the appellants are themselves calling the goods in question as drive away chassis indicating that the same are not motor vehicles but are only chassis for the motor vehicles to be fabricated on the same. 16. In view of our foregoing discussions that DAC are properly classifiable as chassis under Heading 87.06. 17. However, we agree with the submissions of the ld. Advocate that in view of Larger Bench decision of the Tribunal in the case of Sri Chakra Tyres - 1999 (108) E.L.T. 361 (T) = 1999 (32) RLT 1, the amount of differential duty now being confirmed against the appellant is required to be deducted from the overall realisation made by them from their customers for the purpose of assessable value and the demand is required to be re-quantified accordingly. We direct the lower authorities to do so and remand the matter for re-quantification of demand. 18. As a result appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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