2005 (10) TMI 410 - AT - Central Excise

Summary

Issues:
Classification of "waste storage tank for waste diversion chamber" under SH 8401.90 or SH 7309.00 of the CETA Schedule.

Analysis:
The dispute in this appeal revolves around the classification of a specialized storage tank manufactured by the assessee for the Indira Gandhi Centre for Atomic Research (IGCAR), Kalpakkam. The assessee initially classified the item under SH 8401.90 and paid duty accordingly, while the Department contended that it should be classified under SH 7309.00. The original authority sided with the Department, leading to the present appeal.

During the hearing, the Department argued that the tank supplied to IGCAR was labeled and ordered as a "storage tank," emphasizing that the purchase order specified only a "storage tank" without any mention of thermal equipment. On the other hand, the assessee's counsel pointed out that the tank was custom-made for storing radioactive waste according to IGCAR's design, making it suitable only for that specific purpose. The crux of the argument was whether the tank should be classified under Heading 73.09 as a general storage tank or under Heading 84.01 due to its specialized nature.

Upon reviewing the pictures of the tank and the purchase order, the Tribunal concluded that the tank in question was a specialized facility designed for nuclear reactors, specifically for storing nuclear waste. The tank's specifications and purpose clearly indicated its exclusive use within the nuclear industry, making it unsuitable for classification as a general storage tank under Heading 73.09. Additionally, evidence suggested that the tank was fitted with thermal equipment, further supporting its classification under Heading 84.01. Consequently, the Tribunal upheld the decision of the Commissioner (Appeals) to classify the item under Heading 84.01, dismissing the appeal filed by the Revenue.

In the final judgment, the Tribunal sustained the impugned order, thereby confirming the classification of the storage tank under Heading 84.01 as appropriate based on its specialized design and purpose for nuclear waste storage. The appeal was consequently dismissed, and the decision was pronounced in open court on 28-10-2005.