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TMI Blog2019 (4) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... ata). M/s. JCBL was classifying its vehicle under tariff item 8705 9000 of CETA. These vehicles were cleared without payment of excise duty by availing exemption under Serial No.50 of Notification No.6/06-CE dt.1.3.2006. The Revenue entertained a view that the said goods were classifiable under tariff item 8710 0000 of CETA. It was also contended that the said vehicles ought to be assessed in terms of Rule 10A of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. In view of this, various show cause notices were issued to the appellants for different period and the demands were confirmed against the appellants alongwith the interest and penalties were imposed all the appellants. Against the said orders, the appellants are before us. 3. Ld. Counsel for the appellant submits that the bulletproof SPVs are appropriately classifiable under tariff item 8705 90 00 of CETA. These vehicles are meant for use by Army and Paramilitary forces. The fact that these vehicles were for special purpose vehicles has also been substantiated by the VRDE certificate and tendered documents. The opinion of the agencies such as ARAI or VRDE is reliable as held by this Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the heading which provides a general description. In this case, the specific description of the goods, as is evident from the VRDE certificate as also from the purchase order issued by the customer of M/s.Tata, is special purpose armoured vehicle/light armoured troop carrier. He submits that tariff item 8710 00 00 of CETA covers motorised tanks and other armoured fighting vehicles, and parts of such vehicles. Further, such armoured fighting vehicles will continue to be classified under chapter 8710 irrespective of the fact that such vehicles may or may not fitted with weapons. The bulletproof SPVs manufactured by the appellant are not armoured fighting vehicles as is the requirement of heading 8710 and are only armoured vehicles. This bullet proof SPVs have a defensive capability but they do not possess the capability to fight back and are not fitted with guns, mortars or rocket launchers etc. which are used for fighting or combating. The bullet proofing of the vehicles only provides a defensive cover to the personnel in the vehicle. It does not impart any fighting capability to the vehicle. Reliance placed by the adjudicating authority on HSN Explanatory Notes to the chapter h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd that the Director General of Border Security Force has issued tender for supply of 20 numbers of light armoured troops carrier. Therefore, it is to be seen whether these light armoured troops carrier is classifiable under chapter 8705 90 00 or under tariff item 8710 00 00 or not? 11. For better appreciation, chapter headings are reproduced below:- 8705 Special purpose motor vehicles other than those principally designed for the transport of persons or goods (for example, breakdown lorries, crane lorries, fire fighting vehicles, concrete-mixers, lorries, spraying lorries, mobile workshops, mobile radiological units. 8705 10 00 Crane lorries 8705 20 00 Mobile drilling derricks 8705 30 00 Fire fighting vehicles 8705 40 00 Concrete mixer lorries 8705 90 00 Other 8710 00 00 Tanks and other armoured fighting vehicles, motorised, whether or not fitted with weapons, and parts of such vehicles 8711 Motorcycles (including mopeds) and cycles fitted with an auxiliary Motor, with or without side cars; 8711 10 With reciprocating internal combustion piston engine of a cylinder Capacity not exceeding 50 cc 8711 10 10 Mopeds 8711 10 20 Motorised cycles 8711 10 90 Othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e when stationary, the weapon itself having a limited traverse. 12. On-going through the certificate issued by VRDE and tender documents placed on record, we find that it show that these documents show that the requirement of Boarder Security Force is for light armoured troop carrier and as per the certificated issued Vehicle Research Development Establishment that the vehicles manufactured by the appellants are special purpose armoured vehicle. The certificate is having acceptability in light of the decision of this Tribunal in the case of Mann Tourist Transport Service (P) Ltd. (supra) wherein this Tribunal has observed as under- 5.1 In the remand order dated 7-10-2010, this Tribunal had clearly directed the Revenue to get the vehicle examined and obtain expert opinion from agencies such ARAI/VRDE with regard to the seating capacity and determined the classification issue. When the said order was passed, the vehicle was very in the possession of the department and they could have got necessary examination/verification done, which they failed to do. Even after the Apex Court decision, before allowing release of the vehicle, the said action could have been undertaken. This shows ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ogether or separately which is clear from Chapter Note 2. Discussion on this aspect runs as follows :- "It is not disputed by the Revenue that vehicle in question comprise of hauling unit and semi-trailer, it is immaterial whether they are cleared together or separately as it is also emphasized in the Chapter Note 2 that they may or may not contain subsidiary provision for the transport of goods............ Explanatory notes to this chapter heading further state that articulated motor lorry with semi-trailer, tractors coupled to semitrailers, the hauling unit is classifiable under Heading 8701. In the present appeal the vehicle in question is nothing but articulated motor vehicle as per the definition of articulated motor vehicle given in the automotive dictionary. This view also find supports from two opinions of VRDE and VRIA which were sought by the department after forwarding then certificates issued by CMVR and were obtained at the department's own instance. All these clearly establish that vehicle in question is 'tractor' and not LMV. The emphasis on non-use for agriculture purpose is totally misplaced as Heading 8401 includes all kings of tractors including road tractors f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of SPVs deserve to be classified under chapter heading 8705. We also find that HSN Explanatory Notes to chapter heading 8705 provides that primary purpose of a vehicle of this heading is not the transport of persons or goods. These bulletproof special purpose vehicles are primarily designed for rendition of defence/policing services and not for the transportation of persons or goods and hence, merit classification under tariff item 8705 90 00. In view of this, we hold that merit classification of the goods is under chapter heading 8705 90 00. 16. As the goods are classifiable under chapter heading 8705 90 00. Therefore, the appellants are entitled for the benefit under Serial No.50 of exemption notification No6/03-CE dt.1.3.2003. 17. Further, as no duty is payable on these vehicles, we are not discussing the issue of valuation as the same is on relevance in the facts and circumstances of the case. 18. Therefore, no proceedings are sustainable against the appellants and the demands raised against the appellants are set aside. 19. In the result, the impugned orders are set aside and the appeals are allowed with consequential relief, if any. (pronounced in the court on 01.04.2019 ..... 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