TMI Blog2018 (7) TMI 1420X X X X Extracts X X X X X X X X Extracts X X X X ..... vident that when the works truck is not fitted with lifting of handling equipment such as crane, it merits classification under chapter heading 8709. However, when it is fitted with crane, it merits classification under heading 8426 - In their application, the applicant has submitted that they buy readymade trucks say Ashok Leyland, TATA, etc. Such Trucks and Lorries which are meant for transport of goods are covered under chapter heading 8704. Accordingly, classification of the impugned goods under heading 8426 is ruled out, as because the trucks being purchased/used by the applicant for manufacturing truck mounted crane (TMC) are not works truck but these are trucks/lorries which are basically meant for transport of goods. Such Trucks and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se trucks they manufacture cranes which are mounted/fixed on these trucks. These cranes have lifting capacity of 20 tonnes, 25 tonnes, 40 tonnes, etc. These cranes are used for lifting heavy loads. The applicant raised the question as to whether these TMC will fall under the chapter heading 8426 or 8705. Comments of the concerned officer U/S 98(1) OF THE CGST/HGST ACT, 2017 2. The Deputy Excise Taxation Commissioner (ST), Faridabad (West), vide letter dt.3545/CC-1/FBD(W) dt.19.03.2018, submitted the requisite comments as under: That the dealer was registered dealer under HVAT Act, 2003 and a manufacturer of motor vehicle industry any other vehicle industry (EAC Code-12306). The dealer started manufacturing of hydraulic mobile ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erved which is being released today. Discussions and findings of the Authority 4. The questions raised before the Authority for Advance Ruling have been elaborated in para 1 above. The only aspect to be decided in the instant case is whether the truck mounted cranes (TMC) being manufactured/supplied by the applicant will fall under the chapter heading 8426 or 8705. In order to examine this issue of classification, it is important to go through the relevant details of these chapter headings, as under: 8426 SHIP S DERRICKS; CRANES INCLUDING CABLE CRANES; MOBILE LIFTING FRAMES, STRADDLE CARRIERS AND WORKS TRUCKS FITTED WITH A CRANE Overhead travelling cranes, transporter cranes, gantry cranes, bridge cranes, mobile lifting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... --- Ropeway and telphers u 7.50% - 84269990 --- Other u 7.50% - 8705 SPECIAL PURPOSE MOTOR VEHICLES, OTHER THAN THOSE PRINCIPALLY DESIGNED FOR THE TRANSPORT OF PERSONS OR GOODS (FOR EXAMPLE, BREAKDOWN LORRIES, CRANE LORRIES, FIRE FIGHTING VEHICLES, CONCRETE-MIXERS LORRIES, SPRAYING LORRIES, MOBILE WORKSHOPS, MOBILE RADIOLOGICAL UNITS) 87051000 - Crane lorries u 10% - 87052000 - Mobile drilling derricks ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uck which is being used to mount the crane must be works truck Whereas, works trucks are specifically covered under heading 8709 8709 WORKS TRUCKS, SELF-PROPELLED, NOT FITTED WITH LIFTING OR HANDLING EQUIPMENT , OF THE TYPE USED IN FACTORIES, WAREHOUSES, DOCK AREAS OR AIRPORTS FOR SHORT DISTANCE TRANSPORT OF GOODS. Thus, it is evident that when the works truck is not fitted with lifting of handling equipment such as crane, it merits classification under chapter heading 8709. However, when it is fitted with crane, it merits classification under heading 8426. Whereas, in their application, the applicant has submitted that they buy readymade trucks say Ashok Leyland, TATA, etc. Such Trucks and Lorries which are meant for transport ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imply mounted on the vehicle or forms an integral mechanical unit with it, unless they are vehicles designed essentially for transport purposes falling in Heading 87.04. The Hon ble Tribunal further observed that the above explanatory note providing exclusion from the Heading 84.26 supports the department s view that the impugned goods cannot be classified under Heading 8426 but under Heading 8705 as a special purpose motor vehicle; that the crane lorry and other such special purpose vehicles are included under Heading 8705 vide the explanatory note thereunder. 8. As regards the dependency on HSN explanatory notes, the Hon ble Supreme Court of India, in the case of LML ltd. v. Commissioner of Customs 2010(258)E.LT.321(SC)]. has obser ..... X X X X Extracts X X X X X X X X Extracts X X X X
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