Classification of plastic chemical storage tanks under Heading 3925.10 denied exemption under Notification No. 15/94-C.E.

Plastic tanks used for storing chemicals were treated as tanks or vats for holding liquids and, applying Note 11(a) of Chapter 39, were classified under Heading 39.25 and sub-heading 3925.10 rather than Heading 3926.90. On that classification, the goods were not eligible for exemption under Notification No. 15/94-C.E. The earlier contrary view treating them as exempt articles under the alternative heading was regarded as incorrect, and the settled classification position was followed.

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Issues: Whether plastic tanks used for storing chemicals were classifiable under Heading 3925.10 as builders' ware of plastics and, if so, whether they were ineligible for exemption under Notification No. 15/94-C.E.

Analysis: The dispute turned on the relationship between the goods manufactured and the description in the tariff headings. The tanks were found to be tanks/vats meant to hold liquids, including chemicals, and their description and use matched Note 11(a) of Chapter 39. On that basis, they fell within Heading 39.25 and sub-heading 3925.10 rather than Heading 3926.90. The earlier view treating such tanks as exempt articles under the alternative classification was held erroneous, and the settled position was followed.

Conclusion: The tanks were correctly classifiable under Heading 3925.10 and were not entitled to exemption under Notification No. 15/94-C.E.; the appeal succeeded in favour of the Revenue.

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