TMI BlogClassification of goods that undertake lifting and handling functions and have mobility as a functionX X X X Extracts X X X X X X X X Extracts X X X X ..... BIC Madam/Sir, Subject: Classification of goods that undertake lifting and handling functions and have mobility as a function - regarding. Various references have been received in the Board regarding the classification of the goods referred as Truck Cranes or All Terrain Cranes. These are essentially goods that are used in handling and lifting heavy loads and have mobility as a function. 2. These goods come in various types and sizes, depending on the requirement of the users and factors such as load to be handled, the terrain where it is put to use etc. A simple generic description such as All Terrain Cranes would thus represent a large category of similar goods. However, some of the basic features common to goods of this ty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these include- a) The Hon'ble Supreme Court, in the case of Commissioner vs Sanghvi Movers Ltd-2016 (337) ELT A.208 (SC) ruled on the classification of 'hydraulic truck mounted mobile cranes' and upheld the ruling of the Tribunal which stated that the special purpose vehicles listed in the inclusive clause of explanatory notes to 8705 continue to have mobility as a very significant function. While stating that the crane portion and the chassis portion of the product stand fairly integrated, the Tribunal ruled that the product is a crane which is mobile rather than a vehicle fitted with a crane. It was held that the product in question is covered by the exclusion clause of explanatory notes to heading 8705 and therefore th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above or other similar judgements and opinions squarely to all goods of a similar nature. Therefore, it is imperative to outline a set of parameters that can serve as a guide to arrive at the classification of all such goods. Relevant portions of the explanatory notes: 6. The inclusionary clause in the explanation to heading 8426 states : This heading includes self-propelled machines in which one or more of the propelling or control elements referred to above are located in the cab of a lifting or handling machine (generally a crane) mounted on a wheeled chassis, whether or not the whole can be driven on the road under its own power. The cranes of this heading do not generally move under load or, if they do, the movement is l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tation with the International Centre for Automotive Technology (iCAT) and the Automotive Research Association of India (ARAI). A detailed examination of the relevant Section notes, Chapter notes and Explanatory notes of the headings 8426 and 8705 reveals the following aspects which guide the classification of mobile machines:- A. Movement under load As a general principle it can be seen that mobile machines that can move under load are classifiable under 8705. However, when the machine does not move under load or, if they do, when movement is limited and subsidiary to their main function, it is classifiable under 8426. B. Location of propelling and control elements It is clear that when one or more of the propell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hey provide the necessary stability in order for the machine to lifts heavy loads. If the outriggers are connected to and are a part of the sub structure i.e. the chassis and are controlled from the engine fitted with the chassis, it implies that the functioning of the outriggers which are a part of the chassis are crucial to the functioning of the crane In such a scenario, the superstructure i.e. the crane and the sub structure i.e. the chassis, can be said to be working in tandem and can thus be considered to be mechanically and electrically integrated and the goods are be classifiable under heading 8426. In the absence of such integration of the chassis and working machine, the goods are classifiable under 8705. 10. The class ..... X X X X Extracts X X X X X X X X Extracts X X X X
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