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E/26/2006   No. 156/2005 (H-lll) CE dated 29.8.2005  

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M/s. Vijay Mining Equipments  

2. The Respondents manufacture water well drilling rigs mounted on chassis of motor vehicles. They claimed classification of the goods under Chapter Sub Heading 8430.00. However, proceedings were initiated against the Respondents and the Original Authorities classified the impugned goods under 8705.00 and demanded differential duty during the relevant period. If the items are classified under Chapter 84, they would be entitled for the benefit of SSI exemption. If the other classification under Chapter 87 is adopted, the goods would not be entitled for the SSI exemption, hence the demand of duty by the Revenue. The Original Authorities relied on the decision of the Apex Court in the case of CCE v. LMP Precision Engg. Co Ltd. and classified the goods under Chapter 87.05. The Respondents were aggrieved over the decision on the ground that the Supreme Court decision in the above mentioned case is distinguishable from their cases. Hence, they appealed to the Commissioner (A) who passed the impugned orders allowing the appeals of the Respondents with consequential relief. Revenue is aggrieved over the decisions of the Commissioner (A) on the following grounds.

(iii) The Hon'ble Supreme Court dismissed the review petition filed by M/s. L.M.P. Precision Engg. Co. Ltd. as .

(iv) In view of the Hon'ble Supreme Court judgment mentioned above and dismissed of review petition filed by the party, it appears that the drilling rig mounted on chassis of motor vehicle chassis merits classification under Chapter Heading No.8705.00 as special purpose vehicle.

3. Shri K.S. Reddy, learned JDR appeared for the Revenue and Shri V.J. Sankaram, learned advocate appeared for the Respondents.

Other moving grading, levelling, scraping, excavating, tamping, compacting, extracting or boring machinery, for earth minerals or ores; pile-drivers and pile-extractors; snow ploughs and snow-blowers.

6.4 The Commissioner (A) after going through the records has succinctly given his findings in Para 7 and 8 (OIA No. 127/2005). The Para 7 & 8 are reproduced herein below.

7. Both the appellants and Department have relied upon Apex Court decision in the case of CCE v. LMP Precision Engg. Co. Ltd. to argue their case. Facts of this case are that M/s. LMP during the period 1.3.86 to 29.2.88 were classifying water well drilling rigs mounted on motor vehicle chassis under Chapter Sub-Heading No.8430.00 to avail of exemption under Notification No. 120/88 dated.1.3.88 they re-classified the same goods under Chapter sub-Heading No.87.05. When this Notification was amended by Notification No. 142/88 dated.18.4.88 to give exemption to above goods falling under either 8430 or 8705 the assessee again wanted to revert to the classification of 8430.00. At this stage the Department issued Show Cause Notice to the effect that goods has been wrongly classified by assessee under Chapter sub-Heading No. 84.30 and proposed classification of impugned goods under Chapter Sub-Heading No. 8705.00.