1996 (3) TMI 466 - AT - Central Excise

Summary

Issues Involved:
1. Classification of tanks, vessels, scrubbers, and gratings.
2. Eligibility for exemption under Notification 132/86.

Detailed Analysis:

1. Classification of Tanks, Vessels, Scrubbers, and Gratings:

Tanks and Vessels:
The appellants classified tanks and vessels under Chapter Heading 39.26, claiming they are used for industrial purposes and not as builders' ware. The Assistant Collector and Collector (Appeals) had differing views on their classification, with the latter placing them under Chapter Heading 39.25. The Tribunal referenced the case of Heliplastics Limited, where it was held that tanks used in chemical plants and not sold to builders should be classified under Chapter sub-heading 3926.90. The Tribunal found no evidence that the tanks and vessels were used as builders' ware, thus ruling that they should be classified under Chapter sub-heading 3926.90.

Scrubbers:
The appellants argued that scrubbers are essentially tanks made of plastic, which are later converted into scrubbers by the customers by affixing necessary devices. The Tribunal agreed with this interpretation, noting that scrubbers are shells of tanks and should be classified under the same heading as tanks and vessels. Consequently, scrubbers were classified under Chapter sub-heading 3926.90.

Gratings:
The appellants claimed that gratings, used as platforms in chemical plants, should also be classified under Chapter sub-heading 3926.90 and not under Chapter Heading 39.25 as builders' ware. The Tribunal agreed, noting that gratings are articles made of plastic and their use in chemical plants does not change their classification. Therefore, gratings were classified under Chapter sub-heading 3926.90.

2. Eligibility for Exemption under Notification 132/86:

The appellants sought exemption under Notification 132/86 for their products. The Tribunal held that since tanks, vessels, scrubbers, and gratings are classified under Chapter sub-heading 3926.90, they are eligible for the benefit of Notification 132/86. The Tribunal modified the impugned order to reflect this classification and granted the exemption accordingly.

Conclusion:
The Tribunal concluded that tanks, vessels, scrubbers, and gratings should be classified under Chapter sub-heading 3926.90. Consequently, the appellants are eligible for the benefit of exemption under Notification 132/86. The appeal was disposed of with these modifications to the impugned order.