Classification of IC engines for locomotive shunters upheld as prime movers for transport vehicles under the excise tariff.

IC engines specially designed for diesel hydraulic locomotive shunters were treated as engines for use as prime movers for transport vehicles under Tariff Item 29(1), because a shunter was regarded as a vehicle used to transport goods from one place to another. The Tribunal accepted that reasoning and distinguished such engines from the residual category of other engines under Tariff Item 29(2). On that basis, the engines were correctly classified under Tariff Item 29(1) of the erstwhile Central Excise Tariff.

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Issues: Whether IC engines specially designed for use in diesel hydraulic locomotive shunters are classifiable under Tariff Item 29(1) of the Schedule to the erstwhile Central Excise Tariff as engines designed for use as prime movers for transport vehicles, or under Tariff Item 29(2) as other engines.

Analysis: Tariff Item 29(1) applies to IC engines designed for use as prime movers for transport vehicles and having special shape, size or quality for that purpose. The engines in question were admittedly meant for use in loco shunters. The only dispute was whether loco shunters could be treated as transport vehicles. The view accepted by the appellate authority was that a shunter transports goods from one place to another and therefore answers the description of a vehicle and, in the context of Tariff Item 29, a transport vehicle. The Tribunal agreed with that reasoning and found no reason to interfere.

Conclusion: The engines were correctly classifiable under Tariff Item 29(1) of the Schedule to the erstwhile Central Excise Tariff, and the assessee's appeal failed.

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