2017 (11) TMI 1790 - AT - Central Excise

Classification of goods - Chemical Storage Tanks - Held that - After going through the Chapters Note 73 and 84 of the Central Excise Tariff Act, 1985, it is found that the tank with temperature controller is classifiable under Heading 84.19 - The contention raised by the assessee-appellants that storage tank had such facility is not disputed in view of the observation made by the Tribunal in its earlier order - appellant are eligible for Cenvat credit on the duty paid on such tank. The classification under Heading 84.19 upheld and Cenvat credit on the duty paid on such tank is allowed - the penalty imposed also stands dropped. The second issue regarding mono rails and structure for various towers and acid tank is not pressed by the Learned Chartered Accountant. Hence, the same is dismissed being not pressed. Appeal allowed in part.

Summary

Issues Involved:
Classification of chemical storage tanks for Cenvat credit eligibility under the Central Excise Tariff Act, 1985.

Analysis:

1. Background and Tribunal History: The appeal was filed against the Order-in-Appeal passed by the Commissioner of Central Excise (Appeals-II), Jaipur for the period March to December, 2000. This was the second round of litigation before the Tribunal, with the earlier order rejecting the claim of the assessee-appellants. The High Court directed the Adjudicating Authority to decide the proper classification of the articles in question, leading to the present appeal.

2. Contentions of the Parties: The assessee-appellants, represented by a Chartered Accountant, argued that they manufactured chemical storage tanks, initially classified under sub-heading 73.09, and claimed Cenvat credit. They highlighted the specific use of the tanks for chemical processes involving temperature changes, supporting their request for classification under Chapter Heading 8419. The Department, represented by the Learned DR, supported the impugned order denying Cenvat credit on the tanks.

3. Classification Decision: After considering the arguments and examining the Central Excise Tariff Act, the Tribunal found that tanks with a temperature controller fall under Heading 84.19. The Tribunal acknowledged the presence of the temperature control facility in the storage tanks, as previously observed by the Tribunal. Consequently, the Tribunal agreed with the assessee-appellants' contention, allowing Cenvat credit on the duty paid for such tanks and dropping the penalty imposed.

4. Additional Issue Dismissed: The appeal also touched upon mono rails, structures for towers, and an acid tank, which the Chartered Accountant did not press. As a result, this issue was dismissed for not being actively pursued during the proceedings.

5. Final Decision: In conclusion, the Tribunal partly allowed the appeal filed by the assessee-appellants, modifying the impugned order to reflect the classification under Heading 84.19 and granting Cenvat credit on the duty paid for the tanks. The Tribunal's decision resulted in the appeal being partly allowed, with the impugned order being modified accordingly.

This detailed analysis of the judgment provides a comprehensive overview of the issues involved, the arguments presented by both parties, and the Tribunal's decision on the classification of chemical storage tanks for Cenvat credit eligibility under the Central Excise Tariff Act, 1985.