9911796707
TMI Blog1990 (1) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... aram, Additional Central Government Standing Counsel on behalf of the respondents, the Court made the following order :- The petitioner manufactures vehicles known as Dumpers. Besides the chassis, it consists of (1) Special cabin; (2) Tipping gear; and (3) Steel body. The tipping gear lowers and raises the steel body to perform the operation of dumping. 2. The petitioner claimed that it is bound to pay excise duty only on the value of the chassis and that portion of the vehicle forming the cabin and the remaining portions, viz., the tipping gear and the steel body are exempt from payment of duty. 3. The relevant portion of Tariff Item No. 34 at that time was as follows : "MOTOR VEHICLES". "Motor vehicles" means all mechanically pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Item No. 34. 4. Aggrieved by this order, the petitioner preferred an appeal before the Central Board of Excise and Customs, New Delhi and that appeal was dismissed by orders dated 21-5-1979, in which it was held that the specialised material handling equipment must be similar to the weight-lifting or earth moving equipments and a dumper is not one such. It was further held that dumpers are primarily transport equipment and that they are designed to go to distant places when loaded and, therefore, dumpers are not similar to weight-lifting or earth moving equipments. 5. The petitioner thereafter preferred a revision to the Government of India and by orders dated 25-3-1981, the revision was dismissed observing that the dumper is designed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncluding the chassis and cabin, should be taken into consideration. It is rightly contended by the petitioner that merely because this vehicle, which is a motor vehicle, can be used on the roads and the said vehicle (dumper) can carry loads over long distances it would not lose its character as a specialised material handling equipment and therefore, the reasoning of the Appellate authority is not correct. Tariff Item No. 34 deals with "Motor Vehicles" and the term "Motor Vehicle" is described as meaning a mechanically propelled vehicle adapted for use upon roads. Therefore, merely because the equipment in this case, viz., Beaver Rear Dumper is capable of being put on the road and is also capable of carrying loads over long distances, it do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e respondents cannot be sustained. The tipping gear and the steel body are attached to each other and form an integral whole and would come within the meaning of the term "specialised material handling equipment". It follows that the whole portion of it, viz., the tipping gear and the steel body, should be excluded from valuation for the purpose of Tariff Item No. 34. There is no justification for dissecting this equipment into two parts, viz., tipping gear (tipping mechanism) as being eligible for exclusion and including the integral body, viz;, the steel body, forming the container. The tipping mechanism is of no use unless the steel body container is attached to it and similarly, the steel body cannot be used without the tipping mechanis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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