CIR NO.694/10/2003-CX, DT. 19/02/2003

Hand pallet Trucks / Trolley - Classification under heading 84.27

1. 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 the 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 classificaion 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 Gujrat 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 pleas be acknowledged.

Sd/-
(Manish Mohan)
Under Secretary (CX.4)

F. No. 171/15/2000-CX.4

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