Classification of Imported Personnel Carrier Mining Service Vehicle and Dump Truck for Customs Duty: SC to Hear Matter [Read Order]
The matter will be heard by the supreme court to determine the proper tariff classification of such specialized underground mining vehicles.
Customs - duty - Taxscan
Customs - duty - Taxscan
The Supreme Court has admitted an appeal filed by the Commissioner of Customs (Port), challenging the order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) which had quashed a demand against assessee relating to the classification of imported underground mining vehicles.
The assessee, Maheshwari Mining Pvt. Ltd imported specialized underground mining equipment, including a Personnel Carrier (Model ATYR322) and Dump Trucks (Models AJK-320K and Sinome AJK430), classifying them under Customs Tariff Headings (CTH) 84295100 and 84295900, which cover heavy earth-moving machinery.
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The Customs authorities, however, alleged misclassification, contending that the personnel carrier should fall under CTH 87021029 (motor vehicles for transport of 10 or more persons) and the dump trucks under CTH 87041010 (motor vehicles for transport of goods with payload above 10 tonnes), attracting 40% duty instead of the 7.5% paid. A show cause notice demanded ₹3.60 crore in differential duty with interest and cess.
The adjudicating authority upheld the department’s view, confirming the duty demand. However, on appeal, CESTAT Kolkata set aside the order, holding that the vehicles were purpose-built for underground mining, with features such as low height, high turning radius, planetary gear systems, special braking, fire suppression systems, and mine-safety certifications.
The Tribunal relied on Ministry of Road Transport clarifications and Directorate General of Mines Safety (DGMS) approvals to conclude that such vehicles are “off-road” mining equipment, not motor vehicles under Chapter 87.
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It further noted that for subsequent imports, the department itself had accepted classification under Chapter 84, treating them as mining machinery. Consequently, the demand was quashed with consequential relief.
However, the Customs Department filed a civil appeal before the apex Court. The bench comprising Justice J.B. Pardiwala and Justice K.V. Viswanathan condoned the delay, allowed the exemption application, and admitted the appeal of the department.
The matter will be heard by the supreme court to determine the proper tariff classification of such specialized underground mining vehicles. The next date is not fixed by the court.
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