1997 (2) TMI 255 - AT - Central Excise

Summary

Issues: Classification of storage tanks and vessels under the Central Excise Tariff Act, 1985 prior to 1-3-1988.

In this judgment delivered by the Appellate Tribunal CEGAT, New Delhi, the issue revolved around the classification of storage tanks and vessels under the Central Excise Tariff Act, 1985, before 1-3-1988. The respondents, M/s. Peenya Engg. Industries, Bangalore, had classified the goods under Heading No. 7308.90 as other articles of Iron and Steel. However, the Asstt. Collector of Central Excise, Bangalore, disagreed and classified them under Heading No. 3312.90 as containers made of base metal. The Collector of Central Excise (Appeals), Madras, allowed the appeal of the respondents, stating that the goods were not containers intended for packaging but for storing liquids. The Appellate Tribunal was tasked with determining the correct classification of the storage tanks and vessels manufactured by the respondents.

The Tribunal noted that the Central Excise Tariff prior to 1-3-1988 was based on the Brussels Tariff Nomenclature (BTN) for ferrous and non-ferrous metals. It was highlighted that the classification under the Harmonised System of Nomenclature (HSN) was not relevant for classifying Iron and Steel before 1-3-1988. The respondents sought to classify the goods under Chapter 73 of the Tariff as articles of Iron or Steel, specifically under Heading No. 73.08 for other articles of Iron or Steel.

Under the BTN Heading No. 73.22, containers for any material of Iron or Steel exceeding 300 litres were covered. These containers were explained to be different from packing and transport containers as they were primarily used for storage or manufacturing purposes. The Tribunal emphasized that before 1-3-1988, the goods in question were classifiable under BTN Heading No. 73.22, which did not have a corresponding heading in the Central Excise Tariff. A specific Heading No. 83.12 was introduced in the Tariff for containers of base metal, categorizing them into containers intended for packaging and other containers not intended for packaging.

The Tribunal disagreed with the view of the Collector of Central Excise (Appeals), Madras, and held that the goods were rightly classifiable under Heading No. 8312.90 as they were not containers intended for packaging goods for sale. The Tribunal concluded that the appeal of the Revenue was to be allowed, thereby overturning the decision of the Collector of Central Excise (Appeals), Madras.