1992 (10) TMI 148 - AT - Customs

Summary

Issues Involved:
1. Classification of Fork Lift Truck Tyres and Tubes for Additional Duty (CVD) under Central Excise Tariff.
2. Relevance of additional evidence submitted by appellants.
3. Interpretation of "vehicles designed for use off the road" under Tariff Item 4011.91.

Detailed Analysis:

1. Classification of Fork Lift Truck Tyres and Tubes for Additional Duty (CVD) under Central Excise Tariff:
The primary issue in this appeal was the classification of imported Fork Lift Truck Tyres and Tubes for the purpose of levying Additional Duty (CVD). The appellants argued that the tyres should be classified under Heading 4011.99, which refers to "other" tyres, while the Department classified them under Heading 4011.91, which pertains to tyres used on vehicles or equipment designed for use off the road.

The Assistant Collector of Customs and the Collector of Customs (Appeals) had both classified the tyres under Heading 4011.91, relying on the precedent set in the case of M/s. CEAT Tyres of India Limited v. Union of India, 1980 (6) E.L.T. 563. The appellants' appeal was dismissed by the Collector (Appeals), leading to the present appeal.

2. Relevance of Additional Evidence Submitted by Appellants:
During the pendency of the appeal, the appellants submitted a Miscellaneous Application to introduce additional evidence, including certificates from manufacturers, literature, and photographs. The respondent objected to some of these documents on grounds of irrelevance, particularly those not directly related to the parties involved or issued under different legal frameworks.

The Tribunal considered the additional evidence but noted that the dispute regarding the classification of Tubes for additional duty was not initially raised by the appellants and, therefore, was not addressed by the lower authorities.

3. Interpretation of "Vehicles Designed for Use Off the Road" under Tariff Item 4011.91:
The Tribunal examined the specific language of Tariff Items 4011.91 and 4011.99. It noted that sub-heading 4011.91 is specific to tyres used on vehicles designed for use off the road, while 4011.99 is a residuary sub-heading. The core question was whether Fork Lift Tyres fall under the category of "vehicles or equipment designed for use off the road."

The appellants contended that Fork Lift Trucks are primarily used on smooth surfaces like shop floors, docks, and warehouses, and hence should not be classified under 4011.91. They cited the case of Hindustan Motors Limited v. Union of India, 1980 (6) E.L.T. 423, to support their argument, emphasizing that Fork Lift Trucks were registered as Motor Vehicles under the Motor Vehicles Act, 1939.

The Tribunal, however, found that the classification under 4011.91 was appropriate. It referenced the "Maintenance Manual" and other literature defining "off-the-road" tyres, which indicated that such tyres are designed for rugged conditions and heavy loads, characteristics applicable to Fork Lift Trucks. The Tribunal concluded that Fork Lift Trucks, being used in environments like factories and warehouses, possess the attributes of vehicles designed for use off the road.

The Tribunal upheld the classification made by the authorities below, stating that the object of the Central Excise Act is to raise revenue and that the interpretation of "vehicles designed for use off the road" should align with this objective.

Conclusion:
The appeal was rejected, affirming the classification of Fork Lift Truck Tyres under Heading 4011.91 for the purpose of levying Additional Duty (CVD). The Miscellaneous Application for additional evidence was also disposed of, as no separate order was required. The Tribunal's decision was based on a thorough interpretation of the relevant tariff entries and the intended use of the Fork Lift Trucks, aligning with the principles of the Central Excise Act.