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2021 (3) TMI 1359 - CUSTOMS AUTHORITY FOR ADVANCE RULINGS, MUMBAIClassification of goods - underground mining trucks - to be classified under sub-heading 8430 50 10 as mining machinery excluding coal mining or under sub-heading 8704 10 10? - applicant has contended that the provisions of the Motor Vehicle Act do not include vehicle of a special type designed/intended for use only in a factory or in any other enclosed premises, and that goods used majorly in underground enclosed premises cannot be classified as a motor vehicle, and hence, 8704 heading is not applicable. HELD THAT:- The question of referring to the provisions of Motor Vehicle Act or any other statute would arise only when the terms of the tariff headings leave some ambiguity. As per Rule 6 of the general rules for the interpretation of import tariff, for legal purposes, the classification of goods in the sub-headings of a heading shall be determined according to the terms of those sub-headings and any related sub-heading notes and, mutatis mutandis, to the above rules. Thus, the terms of the tariff headings and sub-headings is the primary determinant of classification. The terms of the tariff headings and the accompanying explanatory notes leave no doubt that vehicles that transport goods, but are off-road vehicles are covered under CTH 8704 10. In the event, there is no necessity to refer to the provisions of Motor Vehicle Act or to the product positioning in the advertisements of the supplier. It cannot be the case that extraneous criteria can take precedence over the terms of tariff headings and HSN explanatory notes - In fact, the HSN explanatory notes even elaborate that the goods under sub-heading 8704.10 can generally be distinguished from other vehicles for the transport of goods by the characteristics such as limited speed and area of operation, special earth-moving tyres, payload and that certain dumpers are specially designed for working in mines or tunnels. The goods under consideration in this application are meant for movement/transport goods, carrying relatively high payloads, albeit over short distances within the premises of small and medium sized mines. They are not meant for working the earth. The terms of Heading 8704 10 and the accompanying chapter notes/HSN explanatory notes squarely cover the said goods - there are no merit in the applicant’s contention of the goods not being motor vehicles as the functional and design feature of the goods answer the requirements of CTH 8704 10. Thus, it is held that underground mining trucks, one example of which is the SANDVIK TH 320, is classifiable as motor vehicles for transport of goods designed for usage in restricted conditions like a mine, under 8704 10 10.
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