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2023 (10) TMI 427 - CESTAT AHMEDABADClassification of goods - SSI exemption - Loader fitted in the tractor supplied by the customer - classifiable as a whole under Chapter heading 8705 or any other Chapter heading? The assessee’s claim is that the product manufactured by them is Loader which is accessory of the tractor and is classifiable under Chapter heading 8708 and eligible for SSI exemption under Notification No. 8/2003-CE dated 01.03.2003. HELD THAT:- From various photographs it can be seen that no activity is carried out on the tractor which is already manufactured by the Tractor Manufacturing Company. The tractor is supplied by the customer and on the readily manufactured tractor the loader is fitted and such loader is manufactured independently by the assessee. In this entire process and the nature of the tractor which is received on which loader is fitted, the conclusion is drawn that the appellant’s activity of manufacturing loader independently occurs by taking various alteration and since it is to be fitted in the tractor therefore, the assessee’s activity is under manufacture of the whole vehicle but limited to manufacture of loader. Merely by fitting such loader which is manufactured and mounted on the tractor, cannot be said to be amounting to manufacture of ‘special purpose motor vehicle’ classifiable under heading 8705. In case of manufacture of special purpose motor vehicle, the fabrication and mounting of special purpose body of motor vehicle is fabricated and mounted on the chassis. In the present case, tractor is already manufactured and in majority of cases the clients use his tractor for some time and thereafter it is given to the assessee only for fitting loader in the fully manufactured tractor. The Adjudicating Authority after analyzing relevant Chapter notes of the tariff as well as Chapter note of HSN has rightly interpreted that the tractor alone is of no use and it is used as a power machine for the purpose of use of tractor and different equipment is fitted in the tractor. Therefore, the equipment such as loader in the present case is part of tractor which is much different from the vehicles classifiable as a special purpose motor vehicle under Chapter heading 8705. The Adjudicating Authority has considered all the parameters, considered the photographs, physical aspect of the product, use of the product namely tractor to arrive at the conclusion that loader being accessory of the tractor, is correctly classifiable under Chapter heading 8708 - there are no infirmity in the impugned order - appeal of Revenue dismissed.
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