Motor vehicle classification after Chapter 87 Note 4 favours chassis-based body building as manufacture under Heading 87.02.

After Note 4 to Chapter 87, body building, fabrication, or mounting of structures or equipment on a chassis is treated as manufacture of motor vehicles under Tariff Heading 87.02. Driver cabins and rear bodies fabricated or mounted on chassis were therefore not correctly classifiable under Chapter Heading 87.07. The classification adopted by Revenue was held unsustainable, and the assessee succeeded on the classification issue; no differential duty was payable on that basis.

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Issues: Whether driver cabins and rear bodies fabricated or mounted on chassis were classifiable under Chapter Heading 87.07 or fell within Tariff Heading 87.02 as manufactured motor vehicles after Note 4 to Chapter 87.

Analysis: After introduction of Note 4 to Chapter 87, body building, fabrication, or mounting of structures or equipment on a chassis amounts to manufacture of motor vehicles under Tariff Heading 87.02. The goods in question were therefore not correctly classified under Chapter Heading 87.07, and no differential duty was payable on that basis.

Conclusion: The classification adopted by Revenue was unsustainable and the assessee succeeded on the issue.

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