Larsen & Turbo Ltd Vs Commissioner of Customs (CESTAT Chennai)
CESTAT Chennai held that ‘wheel loaders’ are classifiable as ‘front-end shovel loaders’ and hence are covered under Customs Tariff Heading 8429 5100. However, demand for only normal period is sustained and demand for extended period is set aside.
Facts- The appellant imported ‘wheel loaders’ and classified under Tariff Item 8429 5900. The case of the Department is that the imported wheel loaders are classifiable under Tariff Item 8429 5100. Commissioner of Customs, vide impugned Order-in-Original dated 08.03.2024 rejected the contention of the Appellant by re-classifying the disputed goods under Tariff Item 8429 5100; and confirmed the demand for differential duty of Rs. 4,64,39,734/- under 28(4) of the Customs Act along with interest under Section 28AA of the Customs Act and equivalent penalty under Section 114A of the Customs Act.
Conclusion- Held that it is clear that Tariff Item 8429 5100 covers wheeled machines with a front mounted bucket (loader), which will be used to transport the materials and discharge them. The said bucket acts as a shovel to dig the soil, and using the loader, it will transport the material and discharge it to vehicles. In the present, it is an admitted fact that the imported wheel loader has a bucket fitted on the front of the wheeled machine and is a self-propelled machine. Further, the said bucket fitted in front of the machine could move up and down to pick up the material and transport the same to discharge it on vehicles like dumpers. Thus, from a perusal of the tariff entry coupled with the above detailed description of the imported goods, we find that the imported „wheel loaders‟ are covered under Tariff Item 8429 5100.
