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Classification on Hand Pallet Trucks/ Trolley
Central
Excise Circular No. 694 dated 19th February 2003
I
am directed to say that a doubt has been raised whether the Hand Pallet Trucks/
Trolley are classifiable under heading 84.27 or under heading 87.16 of the
Central Tariff. This classification issue had already been examined once by the
Board for defending the Writ Petition filed by M/s Jaldoot Material Handling
Pvt. Ltd., it was then clarified that the appropriate classification of the item
would be under heading 87.16. The CEGAT however has held in this case that the
correct classification of Hand Pallet Trucks is under chapter heading 84.27 of
CETA, 1985. An appeal against the CEGAT judgement has been filed before Apex
Court.
2.
In case of a similar product described as Hand trolley, the CEGAT has
held (in the case of Gujarat Industrial Trucks Ltd. vs CCE Baroda) that the
correct classification of the item is under chapter heading 87.16 of CETA 1985.
3.
The matter has been examined by the Board. In view of Ministry�s stand
to appeal against the CEGAT decision in the case of Jaldoot Material Handling
Pvt. Ltd. and also the judgement in the case of Gujarat Industrial Trucks Ltd.
vs CCE Baroda, it is clarified that the correct classification of the Hand
Pallet Trucks/ Trolley is under Heading 87.16, However, since in the case of
Jaldoot Material Handling Pvt Ltd. the CEGAT has taken a different view, for
this particular party protective demands should only be raised and kept alive
till the decision of the Apex Court. In respect of other parties demands can be
raised under the normal period prescribed under section 11A of the Central
Excise Act, 1944 and adjudicated.
4.
Trade and field formations may be suitably informed.
5.
Receipt of this circular may please be acknowledged.
6.
Hindi version will follow.
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