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CasesIndian Cases

Simpson & Co. Ltd. vs Collector Of Central Excise on 5 December 1996

Supreme Court of India
Simpson & Co. Ltd. vs Collector Of Central Excise on 5 December, 1996
Equivalent citations: 1997(95)ELT166(SC), (1997)11SCC323, AIRONLINE 1996 SC 772
Bench: S.P. Bharucha, S.C. Sen
ORDER
1. The Customs, Excise and Gold (Control) Appellate Tribunal rejected the contention of the appellants that the internal combustion engines which were manufactured by them and fitted to forklift trucks fell outside the scope of Item 29(i) of the Central Excise Tariff and fell within Tariff Item 29(ii).

Tariff Item 29 reads thus :

29. Internal Combustion Engines, all sorts, namely :
(1) Those designed for use as a prime-mover for transport vehicles and have been given for that purpose some special shape, size or quality which would not be essential for their use for any other purpose.
(2) Others.
2. The case of the appellants was that a forklift truck was not a transport vehicle because it was not intended to carry goods. They stated that the internal combustion engines sold by them to vehicle manufacturers and forklift manufacturers differed in shape, size and quality. The fly wheel and oil sump in the latter was different.

3. To internal combustion engines of all sorts Tariff Item 29(ii) applies. For those internal combustion engines which are designed for use as prime movers of transport vehicles and have been given for that purpose some special shape, size or quality which would not be essential for their use for any other purpose, special provision is made in Tariff Item 29(i).

4. We agree with the view taken by the Tribunal that forklift trucks are vehicles for transport. They may move limited distances and may also stack goods, but they do carry goods. They are, therefore, transport vehicles, even by the test of common parlance. As shown by the appellants themselves, the internal combustion engines which are manufactured by them for being fitted to forklift trucks have special features to enable them to carry out their specific purpose of moving the forklift trucks. They, therefore, have rightly been classified under Tariff Item 29(i).

5. The appeal is dismissed, with no order as to costs.

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