TaxTMI 
TaxTMI 
2025 (12) TMI 1323
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....d (OTR) mining tyres of pattern EZ 330 from its supplier/manufacturer Zhongce Rubber Group Co. Ltd., China, through the port of JNCH, Nhava Sheva. The tyres are of the brands Chaoyang/Goodride and will be imported in two sizes and specifications, namely: (i) 10.00R20 (Load Index 149/146, Speed Index D) and (ii) 11.00R20 (Load Index 152/149, Speed Index D). 2.2 It was further stated that these tyres are specially designed for use in mining and related off-road applications. Reliance was placed on the manufacturer's technical catalogue and literature, which describe the features of the EZ 330 pattern tyres as including tread compounds resistant to chipping and chunking in rugged conditions, robust tread blocks promoting traction and flotation on rough roads, and suitability for low-speed mining service. 2.3 The applicant also referred to requirement letters received from mining companies such as Dev Mining Company and Base Infra Pvt. Ltd., wherein requests were made for the supply of OTR radial tyres for dumpers and tippers operating in challenging mining environments. In addition, it was pointed out that a Chartered Engineer empanelled at JNCH under Publi....
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.... tyres for construction, mining and industrial vehicles, which closely resemble the EZ 330 tyres. This similarity was submitted as further proof of correct classification. The applicant also highlighted that the tyres are new pneumatic tyres of rubber, certified by an empanelled Chartered Engineer as being of OTR nature and dominantly used in mining and related off-road activities, thus aligning precisely with the statutory tariff description. 2.8 It was also contended that the goods cannot fall under subheading 4011 20, which covers tyres of a kind used on buses or lorries. The applicant distinguished between Truck and Bus Radial (TBR) tyres and Off-the-Road (OTR) tyres, submitting a comparative showing that TBR tyres are designed for high-speed highway applications, whereas OTR mining tyres are constructed for low-speed heavy-load conditions with cut-resistant compounds, reinforced sidewalls, and tread patterns optimised for mining terrain. 2.9 In support, reliance was placed on CESTAT Bangalore's Final Order No. 20853/2021 dated 28.12.2021 in M/s The Tyre Mark v. Commissioner of Customs, Bangalore, wherein it was held that tyres dominantly used for off-road and mining ....
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.... applicant, appeared for the hearing in the matter. They reiterated the contentions filed with the application. They contended that the subject goods are new off road mining category rubber tyres pattern EZ 330, CB 332, CB 919, CB 905 and similar. That these are special treaded compound tyres suitable for rugged off road condition and low speed mining service and are mainly used in dumper, tipper vehicles, etc. They have also provided a copy of certified Chartered Engineer copy in this regard. They in support of their claim also provided a comparison chart differentiating the Truck and Bus Radial Tyre (TBR) and Off the road (OTR) Tyres. They contended that the subject goods merit classification under 4011 8000. They also relied upon GRI-1, 3(a) and HSN explanatory Note of Chapter heading 4011. They also relied upon case law in the matter of M/s The Tyre Mark vs CC Bangalore, CESTAT (Bangalore). Nobody appeared for the personal hearing from the department side. 4. DISCUSSION AND FINDINGS 4.1 After careful examination of the submissions, technical documents, and legal references furnished by the applicant, R.K. International, together with the clarifications provided during ....
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....handling vehicles and machines." The applicant contended that this description is more specific than Heading 4011 20 (tyres for buses or lorries), citing distinctions between TBR and OTR tyres, and relying on judicial precedents including Supreme Court and CESTAT rulings which apply the principle of dominant use and endorse reliance on HSN Explanatory Notes. It was further pointed out that ITC HS Code 4011 80 00 is not restricted for import under DGFT Notification No. 12/2015-2020. 4.4 The product under consideration consists of new off-the-road (OTR) pneumatic rubber tyres as detailed in para 4.2. These tyres possess distinctive technical features that clearly differentiate them from conventional Truck and Bus Radial (TBR) tyres. Notably: * They are designed with a substantially higher tread depth of 23-25 mm, compared to the typical 14-18 mm of highway tyres, ensuring superior service life in rugged off- road conditions. * Their Speed Index "D" (65 km/h) is considerably lower than that of standard highway radial tyres (commonly "J" and above, i.e., 100 km/h or more), underscoring their exclusive suitability for off-road, low-speed applications. * The....
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.... subheading illustrate tyres with deep lugs, reinforced structure, and specialized compounds for construction and mining machinery, all of which are consistent with the physical and functional attributes of the tyres of pattern codes CB919, CB905, and CB332, EZ 330. Furthermore, the World Customs Organization (WCO) has clarified through its Classification Opinions and Explanatory Notes that OTR tyres are to be distinguished from standard road-going lorry or bus tyres (falling under subheading 4011 20) by their design intent, construction, and dominant usage, particularly where they are tailored for off-highway vehicles engaged in mining or construction. In this case, the Chartered Engineer empanelled under JNCH Public Notice No. 87/2024-25 has certified vide Certificate Ref. No. 216-CE dated 22.05.2025 and 229, 230, 231-CE dated 02.09.2025, that the goods are of OTR nature and are predominantly intended for mining and off-road use, corroborating the manufacturer's technical literature. 4.10 By applying GRI 3(a), which provides that the heading with the most specific description shall prevail over more general ones, it is evident that subheading 4011 80 00, which precisely de....
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....tured for dumpers, loaders, scrapers, and mining machinery fall under the dedicated OTR sub-headings of Heading 40.11. 4.14 This principle has been consistently upheld by judicial fora, including in Ceat Ltd. v. CCE [2001 (127) E.L.T. 401 (Tri .- Mumbai)] and Kerala Agro Machinery Corp. Ltd. v. CCE [1993 (68) E.L.T. 52 (Tri.)], where the Tribunal not only cited para 4.3 of Circular 24/81 but also applied the 1990 clarification to hold that tyres with deep block treads, high load indices, and cut-resistant construction, intended for off-road vehicles, merit classification as OTR tyres. The HSN Explanatory Notes to Heading 40.11 and the WCO Classification Opinions confirm that tyres "of a kind used on dumpers designed for off-the-road use" are included within sub-heading 4011.80, and identify deep tread, reinforced carcass, heavy load capacity, and low speed indices as defining attributes of OTR tyres. 4.15 The subject tyres satisfy these criteria in full. The EZ-330, CB919, CB905, and CB332 tyres possess tread depths of 23.5-24.5 mm (well above highway norms), Speed Indices "D" or "F" (65-80 km/h), Load Indices ranging from 149 to 152 (corresponding to more than 3,200-3,500 kg....