CBIC classifies goods that undertake lifting and handling functions and have mobility as a function.

The Central Board of Indirect Taxes and Customs on 22^nd September 2022, has issued clarification regarding the classification of goods referred as Truck Cranes or All Terrain Cranes. These are essentially 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 load to be handled, the terrain where it is put to use etc.

A simple generic description such as All Terrain Cranes would thus represent a large category of similar goods. However, some of the basic features common to goods of this type include:

• The primary purpose of these goods is not transport of persons or goods.
• These are equipments designed to lift extremely heavy loads.
• The goods have wheels indicating that they have mobility as a feature.
• There is a superstructure which is the revolving frame of equipment on which operating machinery are mounted along with operator’s cab.
• The carrier or chassis is the under carriage of the crane and includes the carrier cab, wheels, and outriggers. This chassis is designed to support the rotating crane superstructure.
• When in operation, the outriggers fix the equipment to the ground to provide support to life heavy loads. The wheels do not touch the ground in such instances.

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.

Further, the mobile machines that can move under the load are classified under 8705, however when the machine does not move under load or if they do, when movement is limited and subsidiary to their main function, it is classifiable under 8426.