Customs, Excise and Gold Tribunal - Delhi
C.C.E. vs Chemical Process Equipments Pvt. Ltd. on 12 September, 1996
Equivalent citations: 1996(88)ELT157(TRI-DEL)
ORDER G.R. Sharma, Member (T)
1. By the present appeal the appellants have assailed the order of the Collector (Appeals) on the ground that the Collector (Appeals) had wrongly classified the products manufactured by the respondents and had erroneously denied them the benefit of Notification 132/86, dated 1-3-1986.
2. The facts of the case in brief are. that the respondents are engaged in the manufacture of various types of reinforced fibre glasses plastic articles. The respondents filed classification list in respect of following articles :- (A) Pipe and Fittings (Such as Elbows, Tees, Stubend/Flanges), (B) Ductings and fittings (Such as Elbows, Tees, Stubends/Damper Conpoy and Hood), (C) Chimney and Tower (D) Tanks, Vessels, Scrubbers and (E) Gratings. They claimed their classification under Chapter Headings 39.17 and 39.26. The respondents also claimed the benefit of Notification 132/86. However the Assistant Collector approved classification list under Heading 39.17 and under Chapter Heading 3926.90 in respect of some items. The respondents herein filed an appeal against this order before the Collector (Appeals). The Collector (Appeals) accepted the plea of the respondents for classification of the items described against A, B and C under Heading 39.17, scrubbers were classified under 84.21 and tanks and vessels under Heading 39.25. For gratings the Collector (Appeals) held that they were classifiable under Heading 39.25. About exemption of the items under Notification 132/86 the Collector (Appeals) held that exemption will be available to all items covered against Serial No. 38 of this Notification on fulfilment of certain conditions stipulated therein.
3. Shri Sanjeev Sachdeva, ld. SDR appearing for the appellant Collector submits that very same issue was before the Bench of this Tribunal in their own case and issue was decided by the Tribunal in its Final Order Nos. 129 and 130/96-C.
4. Heard the submissions of the ld. SDR and perused the written submission made by the respondents. We find that the Tribunal had discussed various aspects in their final order contained in Paras 17,18,19,20 and 21. For the sake of clarity these paragraphs are reproduced below :-
"Heard the submissions of both sides. In short compass the issue for determination before us can be divided into two parts i.e. (1) what is the classification of "tanks, vessels, scrubbers and gratings" and 2nd issue is ad-missibility of the Notification 132/86.
In so far as the classification of "tanks and vessels" is concerned we find that the facts of this case and the case of Heliplastics Limited decided by this Tribunal are similar. "Tanks are vessels" in the present case are used by chemical plants. No evidence has been brought on record that these tanks and vessels were used as builder's ware or were sold to builders. In the absence of any documentary evidence to the contrary we hold that for classification of "tanks and vessels" the ratio of the judgment cited above will squarely cover the present case. In this view of the matter "tanks and vessels" shall be classifiable under Chapter sub-heading 3926.90.
Now coming to the classification of "scrubbers", according to the appellants, "scrubbers" are nothing but shell of tanks. They are made of plastic. We have seen the decision cited and relied upon by the appellants wherein it has been held that interpretative Rule shows that headings in the items are to be accepted if they are specific. We find that "scrubbers" are made of plastic no evidence has been brought on record to show that they are not shell of tanks. Having regard to the fact that "scrubbers" are made of plastic and are shell of tanks, therefore, they will be appropriately classified under the same heading under which "vessels and tanks" are classified. In view of the fact that these scrubbers are also used in chemical plants, they will be classifiable under Chapter sub-heading 3926.90.
In so far as "gratings" are concerned we observe that they are fittings for tanks. Entry No. 3926.90. reads "other articles of plastics and articles of other materials of Heading Nos. 39.01 to 39.14." 3926.10 "polyurethane foam." 3926.90 - "others". From the submissions made before us we find "gratings" are articles made of plastic. We also find that Chapter 39 is a specific chapter covering articles of plastics. The use of grating is not material for classifying them under a particular heading because the same article can be put to a number of uses. Having regard to the facts and circumstances of the case we hold that "gratings" will be classifiable under Chapter sub-heading 3926.90.
Having held that "vessels", "tanks," "scrubbers" and "gratings" shall be classifiable under Chapter Heading 3926.90 we hold that benefit of Notification 132/86 shall be eligible to the appellants. The impugned order is therefore modified to the extent stated above and the appeal is disposed of accordingly."
5. Having regard to the ratio of the earlier decision of this Tribunal in the case of the respondents herein, we hold that "vessels," "tanks," "scrubbers" and "gratings" shall be classified under Heading 3926.90 and therefore the benefit of Notification 132/86 shall be admissible to the appellants. In this view of the matter the Departments appeal is dismissed.