‘Vajra Vahan’ considered as specially constructed and fitted  vehicle with enable to perform specified functions are Eligible for Excise Duty Exemption: CESTAT [Read Order]

The Chandigarh bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the vajra vahan which was considered as specially constructed and fitted vehicle enabled to perform specified functions was eligible for excise duty exemption. 

Metaltech Motor Bodies Pvt. Limited, the respondent assessee is building bodies of the vehicles, known as Riot Control Vehicles (Vajra Vahan) on the Chases received from Tata Motors and availing exemption contained under Sl No.39 of Notification No.6/2006. 

The revenue appealed against the order passed by the Commissioner (Appeals) for dropping the excise duty demand imposed against the assessee. 

Rajeev Gupta, assisted by Nikhil Kumar Singh and Narinder Singh, the counsels for the department contended that special purpose motor vehicles are other than those special purpose vehicles, which are principally designed for the transport of persons or goods; vehicles like brake down lorries, crane lorries, fire-fighting vehicles, concrete mixer lorries, road sweeper lorries, spraying lorries, mobile worships, mobile radiological units have certain mechanical functions. 

R.K. Hasija, assisted by Shivang Puri, the counsels for the assessee contended that the Vajra Vahan was principally designed to perform non-transport functions like riot control and fighting terrorism; it had been registered as a special purpose motor vehicle (multi-role riot control vehicle) by the Vehicle Research & Development Establishment, Ahmednagar (VRDE), Defence Research & Development Organization (DRDO). 

The Bench observed that the Vajra Vahan, a multi-role riot control vehicle, which was specially constructed and fitted with equipment to enable to perform specified functions, is classifiable under CETH 8705 and it was not principally designed for the transport of passengers or personnel, was correctly classifiable under CETH 8705 and eligible for the exemption contained under Notification No.06/2006-CE. 

The two-member bench comprising S S Garg (Judicial) and Anjani Kumar (Technical) held that the vajra vahan can be classified as a special vehicle used for specific functions. 

To Read the full text of the Order CLICK HERE

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