Tariff classification of specialised vehicle equipment on chassis governed by Item 34, defeating excise levy under Entry 68.

Specialised equipment fitted part by part onto a motor vehicle chassis was treated as forming a specialised motor vehicle for tariff purposes, because it was not first assembled as a separate unit and then mounted on the chassis. On those facts, Explanation II of Item 34 of the erstwhile excise tariff governed classification, and the attempt to levy excise duty under Entry 68 on the equipment mounted on the chassis was incorrect. The Tribunal's classification was therefore upheld in favour of the assessee, and the levy under Entry 68 was held unsustainable.

---

---

Issues: Whether the specialised equipment fitted onto a motor vehicle chassis was liable to excise duty under Entry 68, or whether it fell within Explanation II of Item 34 of the erstwhile excise tariff.

Analysis: The equipment was fitted part by part onto the chassis to produce a specialised motor vehicle, and it was not assembled first as a separate unit and then mounted onto the chassis. On those facts, Explanation II of Item 34 of the erstwhile excise tariff governed the classification, and the attempt to levy duty under Entry 68 on the equipment on the chassis was incorrect.

Conclusion: The levy under Entry 68 was unsustainable and the classification adopted by the Tribunal was correct, in favour of the assessee.

---