Ground clearance under GST compensation cess must be measured in laden condition for vehicle classification under the notification.

An undefined technical expression in a GST compensation cess notification must be construed by reference to pari materia motor vehicle law and the governing certification standard. For eligibility under the relevant entry, "ground clearance" is to be measured in laden condition, not unladen condition, because the prescribed technical method governs the classification. A vehicle that exceeds the threshold when unladen but falls below it when laden does not qualify under the entry. The ruling rejected reliance on passenger-weight variability as a basis for adopting unladen measurement.

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Issues: Whether, for determining eligibility under Sr. No. 52B of Notification No. 1/2017-Compensation Cess (Rate) dated 28.06.2017, the term "ground clearance" is to be measured in laden condition or unladen condition.

Analysis: The term "ground clearance" was not defined in the GST enactment or the cess rate notification. The authority therefore applied the principle of in pari materia construction and referred to the Central Motor Vehicles Act, 1988 and the standards followed for motor vehicle certification. On that basis, it was found that the relevant technical standard for ground clearance requires measurement of the vehicle in fully laden condition up to the maximum authorized gross vehicle weight. The view that passenger weight variability justified using unladen condition was rejected as unsupported.

Conclusion: Ground clearance must be determined in laden condition only, and a vehicle with ground clearance above 170 mm unladen but below 170 mm laden does not fall within Sr. No. 52B.

Final Conclusion: The appeal succeeded on the substantive issue, and the impugned ruling was set aside to the extent challenged, with the cess classification depending on laden ground clearance.

Ratio Decidendi: Where a fiscal notification uses an undefined technical expression relating to motor vehicles, the expression must be construed by reference to the pari materia motor vehicle law and the governing technical standard, and the prescribed measurement method alone governs eligibility.

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