Per Shri V.P. Gulati :

The issue in the appeal relates to the classification of the goods which have been described in the invoice as a Crane having a capacity of 90 Tonnes. The learned lower appellate authority has held the goods to be classifiable under Tariff Heading 87.05 while the appellants seek the classification of the same under Tariff Heading 84.26. The two competing items are reproduced below for convenience of reference:

2. The learned Consultant for the appellants has pleaded that the crane imported by the appellants is special purpose crane having a telescopic boom for raising heavy loads to a high level. The appellants have imported this crane, he pleaded, for the installation of the Wind Mills which comprise of certain parts which have to be fixed at a great height. He has pleaded that the crane is mounted on a chassis which is specially designed for the crane and which has got 16 wheels. The movement provided by the tyres and the chassis is for the crane to be installed at specific places for raising the loads to the desired level for installation purposes. He has pleaded that the learned lower authority failed to take note of the fact that Tariff Heading 84.26 is specific for cranes and even the work trucks fitted with the crane are covered thereunder. He has pleaded that the learned lower authority mis-directed himself in interpreting the scope of the HSN Notes in as much as under the HSN the scope of the items which falls under the Tariff Heading 87.05 is only in respect of such of those which are ordinarily used either on the road or for movement of some of the vehicles which may get stranded or in the factories and work spots for lifting the loads from one place to the other. He has pleaded that the equipment in question is specially designed to function only as a crane and not as a lorry. Item 87.05, he has pleaded covers only lorries on which the cranes have been mounted. He has pleaded the appellants' equipment i.e. the crane mounted on a chassis, it cannot be considered as a chassis of either of a lorry or a truck. He has pleaded that this position is also not controverted in the order of the learned lower authority. The learned lower authority, he has pleaded has only gone by the Chapter Note (2) to Chapter 84.26 as set out in the HSN wherein the following has been set out :

(2) Machines Mounted on automobile chassis or lorries.

Certain lifting or handling machines (e.g., ordinary cranes, light breakdown cranes) are often mounted on what is in fact an essentially complete automobile chassis or lorry in that it comprises at least 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.

3. He has pleaded, a reading of this Note would show that the cranes covered thereunder are ordinary cranes and light break down cranes and the cranes of the capacity of 90 tonnes as imported would not fall under this heading. He has, therefore, urged that the item 84.26 being specific for cranes would be more appropriate for the purpose of classification of these goods. In this connection he has also referred to