The Central Board of Indirect Taxes and Customs (CBIC) has issued clarification regarding the classification of the goods referred to as Truck Cranes or All Terrain Cranes. These are essential goods that are used in handling and lifting heavy loads and have mobility as a function.
Various references have been received in the Board regarding the classification of the goods referred to as Truck Cranes or All Terrain Cranes. These are essential goods that are used in handling and lifting heavy loads and have mobility as a function.
These goods come in various types and sizes, depending on the requirement of the users and factors such as the load to be handled, the terrain where it is put to use, etc.Ā
Since the goods have features that are similar to motor vehicles, as well as to that of load-handling heavy machines, there are differing opinions on the classification of such goods. One opinion states that the goods are essentially cranes that are used in lifting and handling and are therefore to be classified under heading 8426. On the other hand, there is a different opinion relying on the ability of these goods to be propelled and moved from one place to other which makes them similar to the motor vehicles classified under 8705.
The Board said that āit is pertinent to note that the judgments and the classification opinions are specific to a particular good or product. The legal notes and the explanatory notes have been interpreted in the context of those specific goods with particular features. As already pointed out above, the goods referred to as āall terrain trucksā come in various types and it would not be advisable to apply any of the judgments above or other similar judgments and opinions squarely to all goods of a similar nature. Therefore, it is imperative to outline a set of parameters that can serve as a guide to arrive at the classification of all such goods.ā
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