Vehicle body classification on duty-paid chassis supports Heading 8707.00 treatment and small scale exemption eligibility.

Light petroleum gas ammonia tanker bodies mounted on duty-paid chassis were classifiable under Heading 8707.00, because bodies built on customer-supplied chassis had already been accepted as falling within that tariff heading. The corresponding small scale exemption under Notification No. 175/86-C.E. was also available, as the exemption conditions were otherwise satisfied. On that basis, the appellate authority's view was upheld and the Revenue's challenge failed.

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Issues: Whether Light Petroleum Gas Ammonia Tankers mounted on duty paid chassis were correctly classifiable under Heading 8707.00 and entitled to the benefit of small scale exemption under Notification No. 175/86-C.E. dated 01.03.1986.

Analysis: The dispute turned on the classification of the tanker bodies mounted on chassis supplied on which duty had already been paid. The Tribunal noted that the issue had already been settled at the highest level by decisions holding that bus or truck bodies built on customer-supplied chassis fell under Heading 87.07 of the Central Excise Tariff and that the associated small scale exemption was available. On that basis, the view taken by the appellate authority suffered from no infirmity.

Conclusion: The classification under Heading 8707.00 and the grant of the small scale exemption were upheld.

Final Conclusion: The Revenue's challenge failed and the appellate order in favour of the assessee was sustained.

Ratio Decidendi: Vehicle bodies mounted on duty-paid chassis are classifiable under Heading 87.07, and the corresponding small scale exemption is available where the exemption conditions are otherwise satisfied.

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