9911796707
TMI Blog2019 (3) TMI 931X X X X Extracts X X X X X X X X Extracts X X X X ..... ansport tank' is mounted on a chassis and supplied to customer. The applicant submitted a copy of Purchase Order raised by one of its customer and a copy of product catalogue. It has been submitted that the supply of 'transport tank' typically involves following steps :- - Receipt of Chassis free of cost from customer (ownership of chassis retained by the customer) or Transporter who owned chassis and having contract to run it with customer; - Manufacture of 'transport tank' by the applicant; - Assembly / mounting of transport tank over the chassis; and - Supply of the transport tank assembled / bolted on chassis 2. It has been submitted that the aforesaid activities attracted the taxable event of 'manufacture' under the Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Note which stipulates that mounting of any structure on the chassis would amount to manufacture of motor vehicle. As such, the CTA, 1975 recognizes each article independently irrespective of whether it has undergone any activity of manufacture or not. It is also submitted that the activity undertaken by the applicant is limited only to manufacture and supply of transport tank by mounting the same on the chassis provided by customer. The chassis, as used to mount the transport tank does not form part of the 'supply' being affected by the applicant. As such, what is being supplied by the applicant is only transport tank, therefore the classification of said transport tank needs to be ascertained irrespective of the modus of supplying the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nting process undertaken has been submitted as follows:- - Affixing fixtures on tank by way of bolting to function as legs; - Such bolting involves use of U-bolts; - Affixing metal place to chassis by way of bolting to function as resting platform for legs; - Mounting the tank on chassis by bolting the tank legs with metal plates affixed on chassis It is submitted that the mounting process mainly involves bolting aimed at fixation of the tank and can be unmounted by merely unbolting the legs of tank from metal plates affixed on chassis. Further, once the tank is unmounted, it can still be used as a storage tank. It is submitted that the subject article is indeed capable of a variety of usages owing to its capability of storage. The app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In such a case, description of subject article as a part of motor vehicle under heading 8708 is only generic in nature and falls short to cover the subject article in its scope as opposed to heading 7311. The reliance was place on the decision in the case of Transenergy Limited Vs. Commissioner of Central Excise, Chennai [2009 (233) ELT 218 (Tri. Chennai)] = 2008 (9) TMI 130 - CESTAT CHENNAI. 6. The Central GST & Customs Commissionerate, Vadodara-II, vide letter dated 21.11.2017 informed that since the taxable event under GST regime viz. Supply does not cover within its fold the activity of 'manufacture', classification of a product would be based on what is being supplied and occurrence of activity of manufacture would have no bearing on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification." 10. In the erstwhile regime, Central Excise Duty was being levied and collected on all excisable goods produced or manufactured in India. As per Section 2(f)(ii) of the CEA, 1944, manufacture included any process which was specified in relation to any goods in the Section or Chapter Notes of the First Schedule to the CETA, 1985 as amounting to manufacture. Chapter Note 5 of Chapter 87 of the First Schedule to the CETA, 1985 provided as follows :- "5. For the purposes of this Chapter, building a body or fabrication or mounting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sified without having any bearing on the fact whether the same has been mounted or fitted on the Chassis of customer or otherwise. 13. The product 'Container for compressed or liquefied gas, of iron or steel' is specifically covered under Chapter Heading 7311. The applicant has submitted that the subject articles are indeed made up of iron or steel and are used for containing compressed or liquefied gas and therefore merit classification under heading 7311. Even the Central Goods & Services Tax and Customs Commissionerate, Vadodara-II has informed that in erstwhile regime, 'Transport Tank', when cleared from factory vide trucks/ trailers were classified by them under Chapter 7311. Further, as submitted by the applicant, the mounting proces ..... X X X X Extracts X X X X X X X X Extracts X X X X
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