Order date – 01 December 2022 

Key Pointers – 

• The Appellant, M/s Tata Motors Limited is engaged with the business of manufacturing and selling of vehicles, chassis for vehicles and parts thereof. The Applicant manufacture commercial vehicles as well as passenger vehicles.
• The Applicant is planning to manufacture Tata Ace Garbage Tipper vehicles & its variants, which will be supplied to Municipal Corporations, Municipalities, Urban Development Bodies, Gram Panchayats and to contractors to whom operation & maintenance contract has been awarded by these Govt. bodies under Swachh Bharat Mission for collection and disposal of household garbage.
• The issue involved here is whether Tata Ace Garbage Tipper vehicle with its variants for Garbage applications which will be manufactured exclusively keeping in view the requirements of the National Green Tribunal, for collection and disposal of household garbage, are classifiable under Tariff Item 8705.90.00 of the First Schedule to the Customs Tariff Act, 1975 as Special Purpose Motor Vehicles or is classifiable under any other appropriate Tariff item?
• The AAR states that the vehicle manufactured by the applicant is goods carrier and cannot be termed as a special purpose vehicles. As per the certificate produced by the applicant it is seen that the type of vehicle mentioned as “goods carrier”. 
• The dealer has not produced details as to tonnage of vehicles. The applicant has also admitted that the vehicle can be used for transportation of any goods including goods in powder form.
• Thus it would be covered under heading 8704 Motor Vehicle for Transport of Goods would attract tax at 28% under Sr. No.166 of Schedule IV of Notification No. 01/2017-CGST Tax (Rate) dated 28.06.2017 as amended.