Earth moving machinery classification: vibratory compactors qualify for concessional tax benefit under the relevant notifications.

Vibratory compactors were treated as earth moving machinery for purposes of the concessional tax notifications dated 26.07.2001 because the equipment performs earth-compacting functions and an earlier notification dated 31.03.1993 had already classified vibratory compactors as earth moving equipment. That governmental classification was regarded as having statutory force and binding on the revenue, which could not take a contrary position. On that basis, the machinery fell within the concessional entry for earth moving machinery and the tax benefit was available.

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Issues: Whether vibratory compactors are earth moving machinery entitled to concessional tax benefit under the notifications dated 26.07.2001.

Analysis: The disputed machinery was examined with reference to the functional description of earth movers under the relevant schedule and the notifications granting concessional rate of tax. The Court accepted that the vibratory compactor performs the function of compacting waste into the earth and that an earlier notification dated 31.03.1993 had classified vibratory compactors as earth moving equipment. That earlier governmental classification, having statutory force, was treated as binding and was held sufficient to negate the contrary stand taken by the revenue authorities.

Conclusion: Vibratory compactors were held to be earth moving machinery and the assessee was held entitled to the concessional notification benefit.

Ratio Decidendi: A governmental classification of a machine in a statutory notification as earth moving equipment binds the revenue, and machinery performing earth-compacting functions falls within the concessional entry for earth moving machinery.

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