TMI Blog1992 (8) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... 9(2) of the Central Excise Rules read with Section 11A(1) of the Central Excises Salt Act, 1944 and imposing a penalty of Rs. 25,000 besides confiscating 122 plastic reservoirs. The Additional Collector has not accepted the contention of the appellants that the chemical tanks and reaction vessels manufactured by the appellants were classifiable under sub-heading No. 3926.90 as other articles of plastics and were exempt from duty under Notification 53/88-C.E., dated 1-3-1988. He has held that the appellants had not given specific and detailed description of the goods in the Declarations filed by them from 1985 onwards under Notification 111/78-C.E., dated 9-5-1978 and Notification 174/86-C.E., dated 1-3-1986 claiming exemption from taki ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellants products do not merit such classification. The storage tanks and reaction vessels are made according to the specifications of their suppliers and since they do not answer to the description of Builders ware.... , under the main Heading 39.25, the question by their classification under sub-heading No. 3925.10 will not arise in view of General Explanatory Note (1) to the Central Excise Tariff Act, 1985. 5. The appellants have contended that the conclusion of the adjudicating authority in para-3 of his order that Heading No. 39.25 cannot be given restricted meaning as Builders ware is not correct. Such a conclusion is against the General Explanatory Notes, according to which, the article to be considered under particular clas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also stated that he was not aware if any of their product is used as Builders ware . Reference was also invited to the panchnama of seizure in which as many as 122 tanks were shown as seized and each one of them is of different specifications. This itself shows that they are not a standard product either for storage of water or for septic tanks. 6. The appellants have also disputed the finding of the adjudicating authority that there was a mis-declaration because the appellant did not give a clear idea and the exact nature of the product to enable the officers to determine the correct classification. The appellants have described the goods in their declarations as they are bought and sold. Their invoices indicate the same description. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufactured. According to this leaflet, which lists 10 reasons why Spirall Tank is a better alternative, corrosion resistance, inertness to most chemicals and immunity to electrolytic attack, is an important reason. Similarly, it is indicated as ideal for handling slurries and pastes, is non-toxic and non-absorbent and is ideal for pharmaceutical and food industries. Because Spirall Tank is extruded and is spirally wound continuously to give a homogenous construction, it has no seams that could crack under stress. It can withstand an extreme temperature range of 40oC to +80oC. Spirall Tank is Custom-built for the customer in a wide range of sizes upto a storage capacity of 15000 litres. With these special purposes for which Spirall Tanks are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for storage of water and chemicals etc. He also referred to Rule 4 of the Rules for Interpretation of the Tariff and submitted that if goods cannot be classified in accordance with the principles laid down in Rules (1) to (3), they have to be classified under the Heading appropriate to the goods to which they are most akin. 10. We have carefully considered the two appeals, the submissions made at the hearing and have also perused the case records. For the subject goods to be classified under Heading 39.25 as Builders ware of plastics, not elsewhere specified or included , it would be necessary for the authorities to establish that even though they were reservoirs, tanks, vats and similar containers answering the description of sub-head ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r example in shops, workshops, warehouses clarifies that the building activity is not confined to residential accommodation. But to say that chemical tanks and reaction vessels are Builders ware is not correct. The concept of building activity does not come to one s mind when one talks of chemical tanks and reaction vessels. What comes to one s mind is a factory in which manufacturing activity takes place and in which tanks and vessels are required either for storage of chemicals or for enabling chemical reaction to take place. It is possible that some chemical tanks and reaction vessels may be installed in a factory at the time of its construction and to that extent, they may partake of the concept of Builders ware but that would no ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
