Cab-fitted chassis classification under Heading 87.06: no complete waiver without a strong prima facie case.

Cab-fitted chassis remained classifiable under Heading 87.06 because the Tribunal treated a chassis fitted with a cab as distinct from a completed motor vehicle for transport of goods. The appellants' reliance on the tariff note concerning mounting of body, structure or equipment on chassis was not accepted on the facts, as no complete motor vehicle had emerged in their hands and the cited precedent involved a different body-building situation. The Tribunal also noted the absence of financial hardship and found that a strong prima facie case for complete waiver of pre-deposit had not been established, leading to only partial stay on compliance.

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Issues: Whether the appellants had made out a prima facie case for waiver of pre-deposit and stay of recovery in a dispute concerning classification of cab-fitted chassis under the Central Excise Tariff.

Analysis: The dispute turned on whether chassis fitted with a cab could be treated as motor vehicles for transport of goods or remained classifiable under Heading 87.06. The Tribunal noted that Heading 87.06 included chassis whether or not fitted with a cab, while the note relied upon by the appellants referred to mounting of body, structure or equipment on chassis as manufacture. On the facts, the Tribunal found that a complete motor vehicle had not emerged in the appellants' hands and that the cited precedent concerned a different situation involving body-building on chassis. In the absence of financial hardship, the Tribunal held that the appellants did not establish a strong prima facie case for complete waiver.

Conclusion: The request for full waiver was rejected and the appellants were directed to make a pre-deposit of Rs. 10,00,000, with stay of recovery of the balance duty and penalty to follow on compliance.

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