TaxTMI 
TaxTMI 
Classification of goods that undertake lifting and handling functions and have mobility as a function
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....s under CBIC Madam/Sir, Subject: Classification of goods that undertake lifting and handling functions and have mobility as a function - regarding. Various references have been received in the Board regarding the classification of the goods referred as Truck Cranes or All Terrain Cranes. These are essentially goods that are used in handling and lifting heavy loads and have mobility as a function. 2. These goods come in various types and sizes, depending on the requirement of the users and factors such as load to be handled, the terrain where it is put to use etc. A simple generic description such as All Terrain Cranes would thus represent a large category of similar goods. However, some of the basic features common to good....
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....e discussions between parties at the World Customs Organisation (WCO). Some of these include- a) The Hon'ble Supreme Court, in the case of Commissioner vs Sanghvi Movers Ltd-2016 (337) ELT A.208 (SC) ruled on the classification of 'hydraulic truck mounted mobile cranes' and upheld the ruling of the Tribunal which stated that the special purpose vehicles listed in the inclusive clause of explanatory notes to 8705 continue to have mobility as a very significant function. While stating that the crane portion and the chassis portion of the product stand fairly integrated, the Tribunal ruled that the product is a crane which is mobile rather than a vehicle fitted with a crane. It was held that the product in question i....
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....d as 'all terrain trucks' come in various types and it would not be advisable to apply any of the judgements above or other similar judgements and opinions squarely to all goods of a similar nature. Therefore, it is imperative to outline a set of parameters that can serve as a guide to arrive at the classification of all such goods. Relevant portions of the explanatory notes: 6. The inclusionary clause in the explanation to heading 8426 states : This heading includes self-propelled machines in which one or more of the propelling or control elements referred to above are located in the cab of a lifting or handling machine (generally a crane) mounted on a wheeled chassis, whether or not the whole can be driven on ....
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....tomobile features referred to above. Important aspects for classification: 9. The classification of goods having the general features pointed out in para 2 above, has been examined in consultation with the International Centre for Automotive Technology (iCAT) and the Automotive Research Association of India (ARAI). A detailed examination of the relevant Section notes, Chapter notes and Explanatory notes of the headings 8426 and 8705 reveals the following aspects which guide the classification of mobile machines:- A. Movement under load • As a general principle it can be seen that mobile machines that can move under load are classifiable under 8705. • However, when the machine does not move under load....
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....ng machine are specially designed for each other and form an integral mechanical unit and the chassis cannot be used for any other purpose- the goods are excluded from 8705 and are thus classifiable under 8426. • Outriggers are crucial to the functioning of the mobile machine as they provide the necessary stability in order for the machine to lifts heavy loads. If the outriggers are connected to and are a part of the sub structure i.e. the chassis and are controlled from the engine fitted with the chassis, it implies that the functioning of the outriggers which are a part of the chassis are crucial to the functioning of the crane • In such a scenario, the superstructure i.e. the crane and the sub structure i.e. the....