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TMI Blog2018 (7) TMI 1420X X X X Extracts X X X X X X X X Extracts X X X X ..... ation under chapter heading 8426 - It is a special purpose vehicle (crane lorry) which is engaged in lifting/loading. It is evident that when the works truck is not fitted with lifting of handling equipment such as crane, it merits classification under chapter heading 8709. However, when it is fitted with crane, it merits classification under heading 8426 - In their application, the applicant has submitted that they buy readymade trucks say Ashok Leyland, TATA, etc. Such Trucks and Lorries which are meant for transport of goods are covered under chapter heading 8704. Accordingly, classification of the impugned goods under heading 8426 is ruled out, as because the trucks being purchased/used by the applicant for manufacturing truck mounted c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Ashok Leyland, TATA, etc., and on these trucks they manufacture cranes which are mounted/fixed on these trucks. These cranes have lifting capacity of 20 tonnes, 25 tonnes, 40 tonnes, etc. These cranes are used for lifting heavy loads. The applicant raised the question as to whether these TMC will fall under the chapter heading 8426 or 8705. Comments of the concerned officer U/S 98(1) OF THE CGST/HGST ACT, 2017 2. The Deputy Excise & Taxation Commissioner (ST), Faridabad (West), vide letter dt.3545/CC-1/FBD(W) dt.19.03.2018, submitted the requisite comments as under: That the dealer was registered dealer under HVAT Act, 2003 and a manufacturer of motor vehicle industry any other vehicle industry (EAC Code-12306). The dealer started manu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he decision was reserved which is being released today. Discussions and findings of the Authority 4. The questions raised before the Authority for Advance Ruling have been elaborated in para 1 above. The only aspect to be decided in the instant case is whether the truck mounted cranes (TMC) being manufactured/supplied by the applicant will fall under the chapter heading 8426 or 8705. In order to examine this issue of classification, it is important to go through the relevant details of these chapter headings, as under: 8426 - SHIP'S DERRICKS; CRANES INCLUDING CABLE CRANES; MOBILE LIFTING FRAMES, STRADDLE CARRIERS AND WORKS TRUCKS FITTED WITH A CRANE Overhead travelling cranes, transporter cranes, gantry cranes, bridge cranes, mobile lif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ading 8426. At the same time, the said concerned jurisdictional officer has also submitted that the dealer either purchases trucks or are provided by the customers themselves, Cranes are manufactured by the dealer and are mounted/fixed on the trucks. The final product i.e. truck mounted cranes are used for unloading and loading of heavy material. It is a special purpose vehicle (crane lorry) which is engaged in lifting/loading. 6. In the light of above report and in the light of chapter headings as mentioned above, If the said product is to be examined from the view of being classifying the same under heading 8426, it is necessary that the truck which is being used to mount the crane must be "works truck" Whereas, works trucks are specific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ught classification under Heading 8705. While deciding the matter, the Hon'ble Tribunal took note of the explanatory notes to Heading 84.26, which reads as under:- "Certain lifting or handling machines (e.g., ordinary cranes, light breakdown cranes) are often mounted on what is in fact an essentially complete automobile chassis or lorry in that it comprises at least the following mechanical features : propelling engine, gear-box and controls for gear-changing, and steering and braking facilities. Such assemblies fall to be classified in Heading 87.05 as special purpose motor vehicles, whether the lifting or handling machine is simply mounted on the vehicle or forms an integral mechanical unit with it, unless they are vehicles designed esse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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