2003 (5) TMI 283 - AT - Central Excise

Classification of goods - Change in classification - Plastic materials - FRP Vessels made of plastics

Summary

Issues Involved: Classification of FRP Vessels and FRP Reaction Vessels under Central Excise Tariff Act.

Paragraph 2 of the judgment outlines the argument presented by the Appellants regarding the classification of the products. The Appellants claimed that the products, FRP Vessels, and FRP Reaction Vessels should be classified under Heading No. 84.19/84.79 of the Schedule to the Central Excise Tariff Act. They argued that the products were tailor-made for specific purposes, such as pollution control equipment and chemical processing, and therefore should be classified under specific headings. They also contended that the Deputy Commissioner had no authority to reclassify the goods without modifying the earlier order by the Assistant Commissioner. The Appellants cited a previous case to support their argument.

In paragraph 3, the Respondent countered the Appellants' arguments by stating that the products were simple plastic tanks without any additional parts that could classify them as machines or mechanical appliances under Chapter Heading No. 84.19/84.79. The Respondent emphasized that the products were made of synthetic resin with fiberglass and should be classified under sub-heading No. 3926.90 of the Tariff. The Respondent referred to legal precedents to support their stance, including a Supreme Court case and a Tribunal decision.

Paragraph 4 of the judgment presents the Tribunal's analysis of the submissions from both sides. The Tribunal rejected the Appellants' argument that the Revenue could not change the classification of the product in subsequent orders, emphasizing that there is no estoppel against law in tax matters. The Tribunal clarified that classification must be determined based on the description of products in the Tariff. It highlighted that the Appellants' reliance on a previous case was not applicable to the current matter due to different facts. The Tribunal concluded that the impugned products, being made of plastic, were correctly classified under sub-heading No. 3926.90 of the Central Excise Tariff, as they did not qualify as machines, plant, or laboratory equipment under Heading No. 84.19/84.79. Therefore, the Tribunal rejected the Appeal filed by M/s. Dakle Reinforced Plastics Private Limited.