TaxTMI 
TaxTMI 
2014 (1) TMI 115
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....Revenue, however, initiated proceedings proposing to classify the said vehicles under sub-heading No. 8703 33 99 and demanding differential duty as above. The different variants manufactured by the appellant which are undisputed and their details are tabulated as under :- S. No. Vehicle Model & No. of persons which can be carried Gross vehicle weight (GVW) Kerb weight (KW) -Wt of the vehicle without load Pay load GVW-KW Weight of the maxi mum Nos. of persons who can be transported Maximum weight of cargo/ goods that can be carried Ratio of Load carrying to passenger carrying (col-g : col-h) kgs. kgs. kgs. kgs. kgs. (a) (b) (c) (d) (e) (c-d) (0 (g) (h) 1. Bolero Camper 2WD (1+5) 2750 1710 1040 408 632 61:39 2. Bolero Camper 2WD (1+4) 2750 1710 1040 340 700 67:33 3. Bolero Camper-4 WD (1+5) 2750 1790 960 408 552 58:42 4. Bolero Camper-2 WD (1+4) 2750 1790 960 340 620 65:35 5. Bolero Camper Gold-2 WD (1+4) 2510 1800 710 340 370 52:48 3. The origin of proceedings initiated by the Revenue is reclassification vide assessee's letter dated 23-6-2008 addressed to the Assistant Comm....
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....nder 8703.00. The same was contested by us, and the Hon'ble Tribunal in its Order No. 668-69/2002-WZB/C-I, dated 26-2-2002 reported at 2002 (143) E.L.T. 548 held that the vehicles were classifiable under 8704. While passing this order, the Hon'ble Tribunal also considered the argument put forth by the Dept. that vehicle was classifiable under Heading 8703 in view of incorporation of the definition regarding "station wagon" in Chapter Note 6 to Chapter 87 in March, 2000. For the sake of ready reference, the same is reproduced herein below. Station Wagon means vehicles which my be used, without structural alteration, for the transportation of both persons and goods. This view of the department was, however, specifically not accepted by the Hon'ble Tribunal. (Kindly refer to para 4(g) of the said order). An appeal was filed by the Dept. against the above order of the Tribunal, before Hon'ble Supreme Court, The Hon'ble Supreme Court dismissed the said appeal filed by the department as reported at 2003 (152) E.L.T. A-259. A copy of the order of the Tribunal and the dismissal noting of Sup....
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....s under :- "Motor cars and other motor vehicles principally designed for the transport of persons (other than those of Heading No. 87.02), including station wagons and racing cars." 4.2 In the Budget for the year 1996-1997, the word "station wagon" which is relevant for our purpose was taken out of sub-heading 8703. Otherwise, the Heading remained the same. Thereafter change brought out in the Budget for the year 2000. Consequent to the Budget change in the year 2000, the sub-heading 87.03 reads as under :- "87.03 - Motor cars and other motor vehicles principally designed for the transport of not more than six persons, excluding the driver, including station wagons and racing cars. 8703.10 - Three-wheeled motor vehicles 8703.90 - Other" 4.3 In addition to this, Chapter Note 6 was introduced in Chapter 87 which reads as under :- "For the purpose of this Chapter, "station wagon" means vehicles which may be used, without structural alteration, for the transport of both persons and goods." 4.4 At this juncture, it will be worthwhile to note that in the HSN Explanatory Note, the corresponding note reads as under :- "For the purposes of this Heading, the exp....
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.... considered. From this, it is clear that the appellant themselves felt that their products are covered as "station wagons". He has also taken note of the fact that with their knowledge of the product and legal backings and size of the company, this cannot be taken as a decision taken by them without adequate consideration of the issue. (3) The photographs and the product catalogue clearly show that the vehicle is designed for long luxurious travel (through different terrains) comfortably and a cargo box in the rear side of the vehicle is meant for taking care of the goods needed during the drive. He also takes note of the fact that nowhere the product has been described as load/goods carriers. (4) He has refused to accept the claim of the appellant that the cabin in front is meant for loaders/carriers of goods since such luxury is not provided for loaders/carriers of goods but only for passengers. (5) The arguments advanced by the assessee that the vehicle is capable of carrying higher weight of goods than the weight of the passengers and, therefore, it should be treated as goods carrier has been rejected on....
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....on wagon". (b) The submission that the Tribunal had taken note of the definition of 'station wagon' and based on the ruling of WCO, the Tribunal had come to the conclusion that what is relevant is the expression 'principally designed' and the decision was rendered taking note of the meaning of the expression "principally designed" and therefore the fact that chapter note relating to station wagon was not in existence is not correct. While considering the issue, the Tribunal did not have to consider the fact that the Heading excluded expression "station wagon". When WCO considered the issue, the meaning of expression 'station wagon' as in HSN was relevant for the purpose of classification. While discussing the issue, the Tribunal took note of the fact that the WCO rulings have considered the scope of the term "principally designed for 6 persons" and on that basis came to the conclusion that the subject vehicles were not meant for transportation of persons. The Tribunal also took note of the fact that there was no difference between the Headings of HSN and the Central Excise Tariff and both contain the expression 'principally designed for transport of not mor....
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....scribed as 'luxury even in the middle of nowhere'. In another advertisement, the new Bolero Camper DLX is explained as "don't be deceived by it's macho exteriors. It's really luxury in the guise of a vehicle. The air-conditioning is superb. The driver's bucket seat is plush and the DI Turbo engine is actually adrenaline in overdrive. Experience the smooth 5-speed transmission, take it through terrain that challenges the independent front suspension and drive on. Be it on business or even some flimsy pretext of business". Even in the general specifications and engine specifications given by the appellants, while the number of persons that can be seated is indicated, the actual quantity of goods that can be transferred is nowhere mentioned. Only cargo box size is given. The learned special consultant also presented a brief description of Bolero Camper given in the website of the appellants. Under the Heading features, the features are given with the following introduction : "There are some amongst us who are adventure seekers. This is their vehicle. Their other half; their new Bolero Camper Dx. And you will find them in places that are hard to find. Places that even roads shy away f....