CESTAT appoints panel of Chartered Engineers to determine whether machinery items supplied have essential characteristic of lift when assembled
THE issue is of classification of the machinery items supplied by the appellant. When the miscellaneous application was posted for considering whether the machinery items supplied by the appellants are having the essential characteristic of lift assembled together, the appellant relied on an affidavit filed by a Chartered Engineer to support their contention.
Since the Counsel for the Revenue controverted the said affidavit, the Member(J) found it prudent to appoint a three-member panel comprising of Chartered Engineers who were entrusted to examine various materials supplied by the appellants for installation of lift along with the drawings and documents available with them and on inspection to decide whether the various items of lift machinery manufactured by the appellants are having essential characteristics of lift if assembled. The panel was directed to file their reports within two months.
The Member (T) agreed to the proposal but found it worthwhile to clarify the following as a matter of abundant precaution -
"6. …it is the job of the Tribunal to decide the classification of goods which would cover a ruling whether set of items have the essential character of particular machine or not, in this case lift. It is not the job of a technical panel to take such a decision. Technical panel can opine the technical and engineering aspect including utility of various parts. They can also opine what would be the position in the absence of certain parts. These details will assist the Tribunal to take a view, whether or not parts cleared by the appellant can be considered as lift. Panel should not decide or opine whether the various items of lift machinery manufactured by the appellants are having essential characteristic of lift, if assembled."
Incidentally, as for the costs that would be involved, the Bench mentioned this - "Both the sides are directed to bear the expenses of the above panel equally.”