JCBL Ltd. v. CCE & ST

CENTRAL EXCISE TARIFF ACT, 1985

--Classification of goods-- Bulletproof special purpose vehicles for army/paramilitary forces Validity of----Since primary purpose of the said vehicle was patrolling, surveillance and security of the forces inside the vehicle while being stationed at the battlefield and to ensure the safety of the occupants inside the vehicle for which, the vehicle was made bulletproof, the SPV vehicle deserved to be classified under Chapter Heading 8705 90 00.--Assessee was engaged in manufacture/fabrication of bus bodies on the chassis supplied by their customers. It also manufactured bulletproof special purpose vehicles falling under Chapter 87 of the First Schedule to the Central Excise Tariff Act, 1985 for army/paramilitary forces. Assessee classified its vehicle under tariff item 8705 90 00 of CETA. These vehicles were cleared without payment of excise duty by availing exemption under Notification No. 6/06-CE. Revenue alleged that the said goods were classifiable under tariff item 8710 00 00 and the said vehicles ought to be assessed in terms of rule 10A of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. Accordingly, demand was issued against the assessee Held: The bulletproof vehicles manufactured by assessee were light armoured bulletproof vehicles was not disputed. Feature of the bullet proof SPV indicates that these provide protection to the troops sitting inside the vehicles, against bullet/hand grenades. It also had provision for holes on the roof and the sides, through which the troops inside the vehicle can retaliate. Thus, primary purpose of the said vehicle was patrolling, surveillance and security of the forces inside the vehicle while being stationed at the battlefield. The main purpose is to ensure the safety of the occupants inside the vehicle for which, the vehicle was made bulletproof and deserved to be classified under Chapter Heading 8705 90 00.

Central Excise Tariff Act, 1985 Chapter Heading 87