In Re : Action Construction Equipment Limited
GST
2018 (7) TMI 1420 – AUTHORITY FOR ADVANCE RULING – HARYANA – 2018 (15) G. S. T. L. 103 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING – HARYANA – AAR
Dated:- 10-4-2018
ADVANCE RULING NO. /HAR/HAAR/R/2017/18/5
GST
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 on these trucks. These cranes have lifting capacity of 20 tonnes, 25 tonnes, 40 tonnes, etc. These cranes are
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n 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 Bhardwaj, Sr Manager( Indirect Taxation). He reiterated the submissions made in their application for a
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r
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
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426, it is necessary that the truck which is being used to mount the crane must be “works truck” Whereas, works 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 c
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the following mechanical features : propelling engine, gear-box and controls for gear-changing, and steering 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(S
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