9911796707
TMI Blog1998 (1) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... articles of plastics" and not under Heading 39.25 and sub-heading 3925.10 as "builders ware" of plastics. 2. The facts of the case, briefly stated, are these : 3. The respondent herein is engaged in business of manufacture of vessels, chemical tanks, reaction vessels, pipes and gobar gas plants. On a surprise inspection of the respondent's factory by the Central Preventive Unit of the Central Excise Department it was found that the respondent's unit was engaged in manufacture and sale of reservoir tanks etc. without payment of excise duty. Earlier, the respondent claimed exemption from licensing control by declaring the goods manufactured by them being goods covered by sub-heading 3926.90 of the Central Excise Tariff Act. The Excise auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acts that the goods manufactured by them are actually storage tanks, the demand raised by the department deserved to be confirmed. 4. Being aggrieved, the respondent preferred Appeal No. E/3153/89-C against the order confirming the demand raised by the Department and imposing penalty, besides confiscating 122 plastic reservoirs, inter alia, contending that the goods manufactured by them are classifiable under sub-heading 3926.90 as against sub-heading 3925.10 and that the demand of duty beyond the period of six months is barred by time. The respondent also preferred Appeal No. 3104/90-C before the Tribunal against the order of the Collector (Appeals) setting aside the approval of the classification list by the Assistant Collector. Since bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r articles of plastics' Heading No. Sub-heading No. Description of goods Rate of duty 29.26 Other articles of plastics and articles of other materials of Heading Nos. 3901 to 39.14 xxx xxx xxx Xxx xxx 3926.90 Other 30% 7. The case of the respondent before the Tribunal was that they are supplying tanks and vats to industrial plants and just because of usage for industrial purpose, such tank and vats cannot be classified under Heading 39.25 of the classification list. The Tribunal, while accepting the case of the respondent, held that in the absence of any evidence, that tanks and vats manufactured by the respondent are purchased and used by the bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the classification list, as contended by the parties. The relationship of goods with particular heading depends upon the description, purpose and use of the goods. Note 11(a) of Chapter 39 of the Act, provides that Heading 39.25 applies also to reservoir, tanks, including septic tank, vats and similar containers. The purpose and use of these goods is to hold liquids or something in liquid form in process of manufacture as in tanning and dyeing etc., and thus can be used and are capable of being used for water storage in connection with raising of construction or mixing construction materials. It is not disputed that the goods manufactured by the respondent are tanks and vats. The description and usage of tanks and vats manufactured by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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