Custom
TRT-2025-
Cestat Mumbai
Date:-30-01-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 30 January 2023
Parties: M/s. Mahindra & Mahindra Ltd Vs Commissioner of Central Excise, Nagpur
Facts –
- The Appellant, M/s. Mahindra & Mahindra Ltd, are engaged in manufacture and clearance of tractor model having brand name “Arjun Ultra 1-CE” along with other models manufactured and cleared by them.
- A show cause notice dated 9.03.2011 was issued alleging that they have misdeclared their product Arjun Ultra-1 CE as "tractor" falling under chapter sub-heading 8701.90.90 and wrongfully claimed exemption under Notification No. 06/2006-CE dt 16.11.2006 (Sr. No. 40) instead of properly classifying them under the appropriate heading 8429.51.00 as Front End Shovel Loaders.
Issue –
- Whether the appellant rightly classified Arjun Ultra-1 CE?
Order –
- The Tribunal held that from the plain reading of the heading 8701, it is quite obvious and evident that all sort of tractors other than those classifiable under heading 8709 need to be classified under this heading. In terms of HSN Explanatory Notes even the heavy duty tractors for constructional engineering work will be classified under the heading 8701 only and not under the heading 8429 as determined by the revenue.
- The classification of the impugned goods in the form and manner which they are clear as tractor, the fact which is well supported and certified by Central Farm Machinery Training and Testing Institute, Ministry of Agriculture and the Automotive Research Association of India. Also, in terms of the provisions of the Central Motor Vehicle Rules, 1989 the said goods are considered as tractors only. Hence it was held by classifying the impugned goods under heading 8701.
- From the plain reading of the Tariff entries and the entries in the notification it is evident that all goods of CETH 8701, except those which are classifiable under 87012090 are exempt from payment of duty. Thus, the exemption claimed by the appellant under Sl No 40 of the exemption notification no 06/2006-CE will be admissible to them.
- The appeal is allowed.
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