CESTAT Allows Excise Duty Exemption On Special Purpose Bullet Proof Armoured Vehicles To Tata Motors
Mariya Paliwala
20 Dec 2023 12:30 PM IST
The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has granted the excise duty exemption on special purpose bullet-proof armoured vehicles to Tata Motors.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that bullet-proof armoured vehicles are special-purpose vehicles, and VRDE has certified the vehicles to...
The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has granted the excise duty exemption on special purpose bullet-proof armoured vehicles to Tata Motors.
The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that bullet-proof armoured vehicles are special-purpose vehicles, and VRDE has certified the vehicles to be special-purpose vehicles. The vehicles are classifiable under CETH 8705 0000 and thus eligible for exemption.
The appellants/assessees have challenged the order by which the adjudicating authority has classified the Special Purpose Bulletproof Armoured Vehicles manufactured by M/s JCBL Ltd under CETH 8710 0000 as against the claim of the appellant under CETH 8705 9000. The department has imposed a penalty on JCBL Ltd. as well as Tata Motors.
The assessees contended that bullet-proof SPVs are meant for use by the Army and Paramilitary Forces and are appropriately classified under CETH 8705-9000. The classification is substantiated by the certificate issued by VRDE.
The assessee submitted that a provision is required to be made for firing from inside the vehicle through eight holes on the sides and one big hole at the top of the roof to use light machine guns in case of exigency. Therefore, in terms of the HSN Explanatory Notes to Chapter Heading 8705, the vehicles are correctly classifiable under CETH 8705.
The department contended that the vehicle is classifiable under CETH 8710 0000. Tata Motors supplies the chases to JCBL Ltd., and JCBL Ltd. does not purchase them. JCBL Ltd. is a job-worker of Tata Motors, and hence, the provisions of Rule 10A are applicable.
“We hold that the impugned vehicles are classifiable under CETH 8705 0000 and thus eligible for exemption. As the duty is not payable on the impugned goods, discussion on the valuation of the same is of no consequence,” the CESTAT said.
Counsel For Appellant: Krati Sigh
Counsel For Respondent: Siddharth Jaiswal
Case Title: M/s JCBL Limited, Unit-II Versus The Commissioner of Central Excise And Service Tax, Chandigarh-II
Case No.: Excise Appeal No.1936 Of 2012
