2018 (7) TMI 1420 – AUTHORITY FOR ADVANCE RULING – HARYANA – 2018 (15) G. S. T. L. 103 (A. A. R. – GST) – Classification of goods – Truck Mounted Cranes (TMC) – whether these TMC will fall under the chapter heading 8426 or 8705?
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Held 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 – It is a special purpose vehicle (crane lorry) which is engaged in lifting/loading.
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It is evident that when the works truck is not fitted with lifting of handling equipment such as crane, it merits classification under chapter heading 8709. However, when it is fitted with crane, it merits classification under heading 8426 – In their application, the applicant has submitted that th
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armonised System of Nomenclature (HSN).
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Ruling:- The product manufactured/supplied by the applicant, which is resultant of mounting/fixing of crane on readymade trucks/lorries bought by them from truck/lorry manufacturers such as Ashok Leyland, TATA, etc. and known as truck mounted cranes (TMC), is classifiable under heading 8705. – ADVANCE RULING NO./HAR/HAAR/R/2017/18/5 Dated:- 10-4-2018 – Sangeeta Karmakar (Member) and Vijay Kumar Singh (Member) Sh Rajan Luthra, CFO and Sh Deepak Bhardwaj Sr. Manager (Indirect Taxation) for the Appellant. RULING The applicant has submitted that they are manufacturer of Cranes, Backhoe Loaders, forklifts. Motor Graders, Compactors, Tower Cranes, Tractors, Harvesters, etc. The applicant raised the question of correct classification of one of their product namely Truck Mounted 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 o
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r vehicles, other than those principally designed for the transport of persons or goods (for example, breakdown lorries, cranes, lorries, fire fighting vehicles, concrete-mixtures lorries, spraying lorries, mobile workshop, mobile radiological units). As per the report of the concerned assessing authority, 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 unloading and loading of heavy material. It is a special purpose vehicle (crane lorry) which is engaged in lifting/loading/unloading of heavy loads. However, the Product Truck Mounted Crane has got a specific mention in Entry no. 8426 as Works Trucks fitted with a crane . Records, of personal hearing – 2nd Proviso to Section 98(2) of CGST/HGST Act, 2017 3. Personal hearing in the instant case was conducted on 09.04.18, which was attended by Sh Rajan Luthra , CFO and Sh Deepak
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– Mobile lifting frames on tyres and straddle carriers u 7.50% – 84261900 – Other u 7.50% – 84262000 – Tower cranes u 7.50% – 84263000 – Portal or pedestal jib cranes u 7.50% Other machinery, self-propelled : 84264100 – On tyres u 7.50% – 84264900 – Other u 7.50% Other machinery : 84269100 – Designed for mounting on road vehicles u 7.50% – 842699 – Other : 84269910 Ropeway and telphers u 7.50% – 84269990 Other u 7.50% – 8705 SPECIAL PURPOSE MOTOR VEHICLES, OTHER THAN THOSE PRINCIPALLY DESIGNED FOR THE TRANSPORT OF PERSONS OR GOODS (FOR EXAMPLE, BREAKDOWN LORRIES, CRANE LORRIES, FIRE FIGHTING VEHICLES, CONCRETE-MIXERS LORRIES, SPRAYING LORRIES, MOBILE WORKSHOPS, MOBILE RADIOLOGICAL UNITS) 87051000 – Crane lorries u 10% – 87052000 – Mobile drilling derricks u 10% – 87053000 – Fire fighting vehicles u 10% – 87054000 – Concrete-mixer lorries u 10% – 87059000 – Other u 10% – 5. From the above, it is evident that chapter heading 8426 covers SHIP S DERRICKS; CRANES INCLUDING CABLE CRANES;
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rks trucks are specifically covered under heading 8709 8709 – WORKS TRUCKS, SELF-PROPELLED, NOT FITTED WITH LIFTING OR HANDLING EQUIPMENT, OF THE TYPE USED IN FACTORIES, WAREHOUSES, DOCK AREAS OR AIRPORTS FOR SHORT DISTANCE TRANSPORT OF GOODS. Thus, it is evident that when the works truck is not fitted with lifting of handling equipment such as crane, it merits classification under chapter heading 8709. However, when it is fitted with crane, it merits classification under heading 8426. Whereas, in their application, the applicant has submitted that they buy readymade trucks say Ashok Leyland, TATA, etc. Such Trucks and Lorries which are meant for transport of goods are covered under chapter heading 8704. Accordingly, classification of the impugned goods under heading 8426 is ruled out, as because the trucks being purchased/used by the applicant for manufacturing truck mounted crane (TMC) are not works truck but these are trucks/lorries which are basically meant for transport of goods.
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and braking facilities. Such assemblies fall to be classified in Heading 87.05 as special purpose motor vehicles, whether the lifting or handling machine is simply mounted on the vehicle or forms an integral mechanical unit with it, unless they are vehicles designed essentially for transport purposes falling in Heading 87.04. The Hon ble Tribunal further observed that the above explanatory note providing exclusion from the Heading 84.26 supports the department s view that the impugned goods cannot be classified under Heading 8426 but under Heading 8705 as a special purpose motor vehicle; that the crane lorry and other such special purpose vehicles are included under Heading 8705 vide the explanatory note thereunder. 8. As regards the dependency on HSN explanatory notes, the Hon ble Supreme Court of India, in the case of LML ltd. v. Commissioner of Customs 2010(258)E.LT.321(SC)]. has observed that HSN Explanatory Notes are a dependable guide while interpreting Customs Tariff. Hence, th
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