Document Fragment View

Matching Fragments

(i) The Commissioner (A) in classifying the subject gods in sub heading No. 84.30 held that the goods in question are completely integrated units which are self propelled wheeled machine in which chassis in the working machine was specially designed for each other and forming integral mechanical unit.
(ii) The observation of the Commissioner (A) appears to be factually incorrect as the chassis is not specially designed but general purpose chassis manufactured by automobile industry which is modified according to the requirement for mounting the "Drilling Rigs" and this machine does not contain a cab in the machine which contains one or more of the propelling or control elements. The propelling and control elements referred to above are not located in the cab of a machine but in the cab of the motor vehicle. No control elements of the drilling equipments are located in the cab of the vehicle. Assuming that the activity of mounting the drilling rig on the motor vehicle chassis becomes an integral part as held by Commissioner (Appeals), in view of the Supreme Court's judgment holding that even if explanatory note to the Section indicates to the contrary -- drilling rigs mounted on chassis are not classifiable under Heading 84.30 of CETA, 1985. 
 SA/11/(1)                                                                   Date /05/2005
 

 CERTIFICATE
 

 PROCESS OF  OF BORING MACHINERY / WATER 
WELLDRILLING RIG BY M/s. CHAITANYA INDUSTRIES, 
KUSHAIGUDA, HYDERABAD

As per the request of M/s. Chaitanya Industries, the under signed has visited the Rig Registration No.RJ 06 0 - 1894 supplied by M/s. Chitanya Industries vide Invoice No.40 Date 18-01-1997 to M/s. VenkatesHwera Rock Drills, and also Rig R.C. No. AP 24 B 3888 supplied vide Invoice No. 44 Date 15-02-1997 to M/s. Raghavendra Borewells. We have inspected & examined the Machinery / Water Well Drilling Rigs mounted on M. V. Chassis supplied by M/s. Chaitanya Industries, Kushaiguda, Hyderabad and report is given as under. This is only our Chartered Engineer Certificate and has no legality or consequences whatsoever.

10) From the above, flow sheet and actual machine it can be seen that the machine is not simply mounted on an automobile chassis but is completely integrated with a suitable modified chassis that cannot be used for other purpose.

CONCLUSION:

In conclusion, we certify that the chassis is totally disintegrated initially and manipulated and used to produce in the process a rig. Thus the chassis undergoes transformation. It is transformed totally with various modifications described above so that it becomes integral and inseparable part of the rig and with such large modifications described above the chassis does not exist in its original form and contour. It becomes only an essential part of a rig. The operations conducted on the chassis (brought from outside) and on the material / machine parts / accessories and other equipments involve total integration and manipulation so that the original chassis does not exist at all. Further the resultant rig is just like any other rig manufactured by an integrated manufactory exclusively employed in producing drilling rigs.
6.2 Further we are also enclosing the manufacturing process flow chart with respect to M/s. Chaitanya Industries and the manufacturing process is similar in respect of the other appellants.

CHAITANYA INDUSTRIES THE PROCESS FLOW CHART FOR THE FINAL ROTARY / D.T.H RIG IS AS SHOWN BELOW:

6.3 Revenue contends that the chassis and drilling rig are not designed for each other. We do not agree with that contention. From the manufacturing process, we find that the chassis supplied by the customer undergoes great deal of modification to suit the design requirement and the working of the machine with respect to the rig. In fact the chassis is totally disintegrated initially and manipulated and used to produce in the process a rig. It is definitely an integral and inseparable part of the rig and the chassis does not exist in its original form and contour. In these circumstances, the impugned goods are rightly classifiable under Chapter No.8430 which reads as: