2020 (1) TMI 942

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.... property service. 2 The facts of the case are that the appellant is engaged in the manufacture of bullet proof morchas, bomb disposal baskets, bullet proof patka and fabrication of truck bullet proof bodies. The appellant is carrying out fabrication on vehicles for J & K Government, for which chassis was supplied by the J & K police department and claimed exemption under Notification No.6/2006- CE dt. 1.3.2006. The appellant was also undertaking the work of erection and commissioning of bullet proofing components in cars of various models on which the service tax was discharged under the category of works contract service. The fabricated motor vehicles have features such as protection against AK-47, splinter proof protection, bullet proof....

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....by the appellant merit classification under tariff item 8705 90 00 and special purpose motor vehicles, therefore, they are entitled for exemption under Notification No.6/2006-CE dt. 1.3.2006. To support this contention, he relied upon the decision of this Tribunal in the case of JCBL Limited vs. CCE-2019 (4) TMI 176-CESTATChandigarh. He further submits that the Revenue classified the vehicles under tariff item 8710 00 00. He submits that as the appellant is undertaking the activity of bullet proofing alonwwith material on which VAT is being paid by them, the same are classifiable under works contract service on which they are paying service tax. Therefore, the said activity does not fall under the category of business auxiliary service in t....

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....requirement of Boarder Security Force is for light armoured troop carrier and as per the certificated issued Vehicle Research Development Establishment that the vehicles manufactured by the appellants are special purpose armoured vehicle." 9. This Tribunal has further held as under:- "15. In the light of that, we have to examine tariff heading 8705 which is applicable to special purpose vehicle. Admittedly, the vehicle in question is a special purpose vehicle, therefore, the same have merited classification under tariff heading 8705 90 00. We have also examined HSN Explanatory Notes to chapter 87.10 it excludes cars and lorries of the conventional type, armoured or equipped with subsidiary removable armour which will cover under headings....

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....transportation of persons or goods and hence, merit classification under tariff item 8705 90 00. In view of this, we hold that merit classification of the goods is under chapter heading 8705 90 00." 10. Therefore, we hold that the appellant is manufacturing special purpose light armoured vehicle meant for use by troops and merit classification under Chapter heading 8705 90 00 and entitled for the benefit of exemption Notification No.6/2006-CE dt.1.3.2006 and no duty is payable by the appellant on the said activity. 11. Now we come to the second issue, whether the activity of bullet proofing is classifiable under works contract or business auxiliary service. We find that it is fact on record that that the appellant is providing the said se....