2018 (1) TMI 466 - AT - Central Excise

Classification of goods - Chemical Storage Tanks - CENVAT credit - Held that - After going through the Chapter Note 73 and 84 of the Central Excise Tariff Act, 1985, we find that the tank with temperature controller is classifiable under Heading 84.19 - the classification under Heading 84.19 approved and cenvat credit on the duty paid on such tank allowed - penalty also set aside. The 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.

Summary

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

Analysis:
The appeal was filed against an Order-in-Appeal denying Cenvat credit on chemical storage tanks. The Tribunal had previously rejected the claim, leading to a High Court directive to decide the proper classification first. The adjudicating authority then denied the credit, prompting the present appeal. The manufacturer argued that the tanks were specific to chemical processes, not general storage, and should be classified under Chapter Heading 8419 for credit eligibility. The Department opposed this claim.

Upon review, the Tribunal found the tanks with temperature control to be classifiable under Heading 84.19, as noted in the Central Excise Tariff Act. The previous observation confirmed the tanks had the necessary facility, supporting the manufacturer's eligibility for cenvat credit. Consequently, the classification under Heading 84.19 was approved, allowing the credit and dropping the penalty. The issue of mono rails, tower structures, and acid tank was not pursued by the manufacturer and was dismissed accordingly.

In conclusion, the appeal was partly allowed, modifying the impugned order to grant cenvat credit for the chemical storage tanks under the appropriate classification. The decision was pronounced in open court, partially in favor of the manufacturer.