2018 (7) TMI 1420

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....unted Cranes (TMC). The applicant submitted that they buy readymade trucks, say, Ashok Leyland, TATA, etc., and on these trucks they manufacture cranes which are mounted/fixed on these trucks. These cranes have lifting capacity of 20 tonnes, 25 tonnes, 40 tonnes, etc. These cranes are used for lifting heavy loads. The applicant raised the question as to whether these TMC will fall under the chapter heading 8426 or 8705. Comments of the concerned officer U/S 98(1) OF THE CGST/HGST ACT, 2017 2. The Deputy Excise & Taxation Commissioner (ST), Faridabad (West), vide letter dt.3545/CC-1/FBD(W) dt.19.03.2018, submitted the requisite comments as under: That the dealer was registered dealer under HVAT Act, 2003 and a manufacturer of motor ....

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.... the submissions made in their application for advance ruling. After detailed discussions the decision was reserved which is being released today. Discussions and findings of the Authority 4. The questions raised before the Authority for Advance Ruling have been elaborated in para 1 above. The only aspect to be decided in the instant case is whether the truck mounted cranes (TMC) being manufactured/supplied by the applicant will fall under the chapter heading 8426 or 8705. In order to examine this issue of classification, it is important to go through the relevant details of these chapter headings, as under: 8426 - SHIP'S DERRICKS; CRANES INCLUDING CABLE CRANES; MOBILE LIFTING FRAMES, STRADDLE CARRIERS AND WORKS TRUCKS FITTED WITH ....

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.... - 87059000 - Other u 10% - 5. From the above, it is evident that chapter heading 8426 covers SHIP'S DERRICKS; CRANES INCLUDING CABLE CRANES; MOBILE LIFTING FRAMES, STRADDLE CARRIERS AND WORKS TRUCKS FITTED WITH A CRANE. Due to the fact that this heading covers Works Trucks fitted with cranes, the concerned jurisdictional officer has also recommended that the impugned product merits classification under chapter heading 8426. At the same time, the said concerned jurisdictional officer has also submitted that the dealer either purchases trucks or are provided by the customers themselves, Cranes are manufactured by the dealer and are mounted/fixed on the trucks. The final product i.e. truck mounted cranes are used for unl....

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....e is mounted upon them to make Truck Mounted Crane, the resultant product will be special purpose vehicles, falling under chapter heading 8705. 7. This matter stands clarified from the judgment of the Hon'ble Tribunal in the case of Automotive Coaches & Components Ltd. v. Commr. of c. Ex., pondy (2010 (252) E.L.T: 206 (Tri. - Chennai)) . In this case, the appellants has sought classification under chapter heading 8426, whereas department sought classification under Heading 8705. While deciding the matter, the Hon'ble Tribunal took note of the explanatory notes to Heading 84.26, which reads as under:- "Certain lifting or handling machines (e.g., ordinary cranes, light breakdown cranes) are often mounted on what is in fact an essentiall....