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TMI Blog2019 (3) TMI 931X X X X Extracts X X X X X X X X Extracts X X X X ..... in Chapter 87 of the CTA, 1975 analogous to Chapter Note 5 of Chapter 87 of the CETA, 1985, the Transport Tank , even if mounted or fitted on the Chassis of customer, would not fall under Chapter 87 of the CTA, 1985. Therefore, the product Transport Tank would have to be independently classified without having any bearing on the fact whether the same has been mounted or fitted on the Chassis of customer or otherwise. The product Container for compressed or liquefied gas, of iron or steel is specifically covered under Chapter Heading 7311 - the mounting process undertaken by it mainly involves bolting and the mounted Transport Tank can be easily de-mounted - the product Transport Tank mounted on chassis of customer is appropriate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1985 ) since the activity of mounting body on the chassis was defined to be deemed manufacture vide Section 2(f)(ii) of the CEA, 1944 read with Note 5 of Chapter 87 of the CETA, 1985. This position of law attained finality based on the decision of Hon ble Supreme Court in the case of CCE, Mumbai Vs. Sadguru Auto Builders [2006 (199) ELT 386 (SC)] = 2005 (3) TMI 12 - SUPREME COURT OF INDIA . Due to said deeming fiction, the applicant deemed to have manufactured the entire motor vehicle and therefore was obligated to follow the duty structure as applicable to manufacture of motor vehicle, including its classification under the CETA, 1985. Accordingly, the applicant classified the chassis mounted with transport tank as a vehicle under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly based on it being a tank . The variety of tanks manufactured by the appellant attracts its classification under Chapter 73 once it merits classification with reference to it being merely a tank, as opposed to a motor vehicle. 4. The applicant raised the following question for advance ruling Whether supply of transport tank by mounting the same on chassis amount to supply of tank classifiable under Heading 7311 or supply of motor vehicle classifiable under Heading 8704 in the GST regime ? 5. In the further written submission vide letter dated 16.01.2018 (submitted on 18.01.2018), the applicant inter-alia referred to Tariff Heading 7311 of the CTA, 1975 and submitted that a tank as such when made of iron or steel and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hi III [2005 (180) ELT 300 (SC)] = 2005 (2) TMI 114 - SUPREME COURT OF INDIA wherein it was held that functional utility, design, shape and predominant usage are to be taken into consideration when determining classification of products. The appellant requested that the subject article which is pre-dominantly used as a tank to contain compressed or liquefied gas ought to be classified under heading 7311 5. It is further submitted that classification of an article is governed by General Rules for the Interpretation of Schedule (herein after referred to as the Rules for Interpretation ) and classification of transport tank as either a container under heading 7311 or as a part of motor vehicle under heading 8708 merits application o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (by manufacturing tank and mounting it on the chassis supplied by the recipient) is classifiable as Motor Vehicle under Chapter Heading 8704. It has been further informed that in Central Excise regime, the applicant used to manufacture Transport Tank , which when cleared from factory vide trucks/ trailers were classified by them under Chapter 7311 and when the goods supplied by mounting on the chassis provided by the customer, they classified under Chapter Heading 8704. 7. We have considered the submissions made by the applicant in their application, further written submission as well as at the time of personal hearing. We have also considered the views of the Central Goods Services Tax and Customs Commissionerate, Vadodara-II. 8. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ading 8706 shall amount to manufacture of a motor vehicle. Therefore, in view of the aforesaid Chapter Note 5 of the First Schedule to the CETA, 1985 read with Section 2(f)(ii) of the CEA, 1944, mounting or fitting of structures or equipment on the chassis falling under heading 8706 amounted to manufacture of a motor vehicle. Accordingly, in case of mounting of transport tank by the applicant on the Chassis falling under heading 8706 of the customer, amounted to manufacture and was classifiable under Chapter 87. 11. However, as noted herein before, for the purpose of ascertaining the appropriate classification of the goods supplied and applicable rate of Goods and Services Tax thereon, the rules for the interpretation of the F ..... X X X X Extracts X X X X X X X X Extracts X X X X
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