Motor vehicle chassis bodies held classifiable under Tariff Heading 87.07, supporting possible exemption under Notification No. 175/86.

Bodies built on motor vehicle chassis were treated as classifiable under Tariff Heading 87.07, consistent with the Punjab and Haryana High Court view and not under Tariff Headings 87.02 or 87.04. Departmental reliance on Notification No. 248/87 issued under Section 11C of the Central Excises and Salt Act, 1944 was rejected as an unsafe basis for a contrary classification. On that classification, the goods were capable of qualifying for the benefit of Notification No. 175/86 dated 1-3-1986, if the remaining conditions for exemption were satisfied.

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Issues: Whether bodies built on motor vehicle chassis by the appellants were classifiable under Tariff Heading 87.07 and, if so, whether the benefit of Notification No. 175/86 dated 1-3-1986 was available.

Analysis: The issue was held to be squarely covered by the decision of the Punjab and Haryana High Court, which had ruled that such bodies are classifiable under Tariff Heading 87.07 and not under Tariff Headings 87.02 or 87.04. The departmental reliance on Notification No. 248/87 dated 4-11-1987 issued under Section 11C of the Central Excises and Salt Act, 1944 was rejected as an unsafe basis to infer a contrary classification. Following the High Court ruling, the appellants' goods were treated as falling under Tariff Heading 87.07, with the consequence that the exemption under Notification No. 175/86 would apply if otherwise available.

Conclusion: The classification was held to be under Tariff Heading 87.07, and the appellants were held entitled to the benefit of Notification No. 175/86 if otherwise applicable.

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