Classification of bodies on duty-paid chassis under Tariff Heading 87.07 supports exemption relief and eliminates further duty demand.

Milk tankers mounted on duty-paid motor vehicle chassis are treated as bodies built on such chassis and are classifiable under Tariff Heading 87.07, not Tariff Heading 87.04. On that classification basis, the exemption under Notification No. 175/86-C.E. becomes available where otherwise applicable, and no further duty liability survives. The note also records that the exemption had already been reflected through the earlier classification list and the finalisation of RT-12 returns, supporting the conclusion that the disputed duty demand should not be raised.

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Issues: Whether milk tankers mounted on duty-paid motor vehicle chassis were classifiable under Tariff Heading 87.04 as contended by the Revenue or under Tariff Heading 87.07, and whether the assessee was entitled to the benefit of Notification No. 175/86-C.E. dated 01.03.1986.

Analysis: The controversy was held to be settled by the Supreme Court ruling that bodies built on duty-paid motor vehicle chassis fall under Tariff Heading 8707. On that basis, no further duty liability survived, and the benefit of the exemption notification was available to the assessee. The Tribunal also noted that the notification benefit had already been extended on the basis of the earlier classification list and finalisation of RT-12 returns.

Conclusion: The goods were not to be assessed under Tariff Heading 87.04, and the assessee was entitled to the exemption benefit.

Final Conclusion: The Revenue's challenge to the classification and resulting duty demand failed, and the appeal was dismissed.

Ratio Decidendi: Bodies built on duty-paid motor vehicle chassis are classifiable under Tariff Heading 8707, and where the exemption notification is otherwise applicable, no further duty demand survives.

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