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M/s Sita Singh & Sons P. Ltd., M/s SML Isuzu Ltd. Versus CCE, Delhi-IV

2016 (7) TMI 346 - CESTAT CHANDIGARH

Valuation - Classification - manufacturing chassis for ambulances and sending it to the second appellant for building body of the ambulances on such chassis. - Classifiable under chapter heading 87.02 or 87.03 - whether it should be valued on cost construction basis or on the basis of the sale price of the ambulances to independent buyers, by the second appellant - Held that:- Primary test is that sitting capacity of the vehicle. Admittedly vehicle in question can carry more than 12 persons excl .....

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ating authority whether the appellants have paid duty as per Rule 10A or not. - Matter remanded back. - E/2350 & 2367/2011-EX(DB) - Final Order No. 258-259/2016-CHD - Dated:- 16-12-2015 - Mr. Ashok Jindal, Judicial Member and Mr. Raju, Technical Member Shri B. L. Narshimhan, Advocate-for the appellant Shri B.B. Sharma, A.R. - for the respondent ORDER M/s Sita Singh & Sons is the first appellant and M/s. SML Isuzu Ltd. is the second appellant are in appeals against the impugned order. 2. The .....

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second issue is that the first appellant has paid duty under heading 87.02 of the Central Excise Tariff whereas the department is proposing classification under heading 87.03 of the Central Excise Tariff. 3. Learned Counsel for the appellant submitted that the issue No. 1 regarding valuation of ambulances has been settled against the appellant in the case of Audi Automobiles Vs. -2010 (249) ELT 124 (Tri.-Del.). Therefore, they are not pressing to drop the demand on that ground. 4. For issue of .....

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git entry for ambulances under heading 87.03 ambulances were classifiable under 87.03 for the whole period that is even for the period prior to 2005. He submitted that such ground is not sustainable as the appellant is manufacturing motor vehicles principally designed for transport of more than six persons excluding the driver, will fall under heading 87.02 only. The heading 87.03 covered only motor cars and other motor vehicles principally designed for the transport of not more than six persons .....

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of Heading and hence only ambulances which can carry six persons or less will come in that tariff item. He also submitted that there is no dispute about the ambulances in question was designed for carrying more than six persons. In fact these vehicles are capable of carrying 14 persons including driver. Therefore, vehicles are classifiable under heading 87.02 and on that ground they are not liable to pay duty as per classification under heading 87.03. 5. He further submitted that for the period .....

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carry 8 persons when patient is not carried in lying condition in that case this is to be classified under 87.02. 6. On the other hand, learned AR reiterated the finding in the impugned order and submitted that this vehicle is specifically mentioned in tariff heading which is appropriately classifiable under heading 8703. 7. Heard the parties and considered the submissions. 8. The tariff entries which are relevant for us are as under : 87.02 Motor vehicles principally designed for the Transport .....

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that the vehicle in dispute can carry more than 13 persons. After going through the tariff heading only it is to determine whether the vehicle is for transport of more than 10 persons or not as classification of vehicle under heading 87.02 or 87.03 is to be decided on the basis of sitting capacity of the vehicle only. As per heading 87.03 it is clearly mentioned that the said classification shall be applicable to the vehicles which are not covered under heading 87.02 9. Primary test is that sitt .....

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in their registration certificate having certificate of 4 persons have been manufactured by the appellant before us. Therefore, the contention of the Revenue is not accepted in the absence of contrary evidence. We further, find that in the case of TELCO (supra), this Tribunal came to an occasion to decide classification, it has been observed by this Tribunal as under : - 2. It is not in dispute that the impugned vehicle can carry 8 persons when the patient is not carried in lying condition .....

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