Plastic chemical tanks are not builders' ware when made for industrial storage; classification as other articles of plastics prevails.

Plastic chemical tanks, reaction vessels and similar containers custom-built for chemical storage and industrial use were not "Builders' ware of plastics" under Heading 39.25 and sub-heading 3925.10. Classification depended on proof that the goods were made for builders or use in building activity, and the record did not show such a factual basis. Their specifications, corrosion resistance and suitability for pharmaceutical and food industries supported classification as "other articles of plastics" under sub-heading 3926.90. Mere installation during factory construction, or isolated supply for water use, did not alter their character. As the Department did not discharge the burden of proving its tariff classification, the duty demand, confiscation, penalty and mis-declaration allegation could not be sustained.

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Issues: Whether the plastic chemical tanks, reaction vessels and similar containers manufactured by the appellants were classifiable as "Builders' ware of plastics" under Heading 39.25 and sub-heading 3925.10 of the Central Excise Tariff Act, 1985, or as "other articles of plastics" under sub-heading 3926.90, and whether the demand of duty, confiscation, penalty and allegation of mis-declaration could therefore be sustained.

Analysis: Classification under Heading 39.25 depended on the authorities first establishing that the goods, though tanks or vessels in form, were essentially "Builders' ware". The record did not show evidence that the seized tanks were manufactured for builders, building contractors or use in building activity. The goods were stated to be custom-built for chemical storage and industrial use, with varying specifications, corrosion resistance and suitability for pharmaceutical and food industries. The mere fact that some tanks may be installed at the time of construction of a factory or that a few orders were received for water supply did not convert chemical tanks and reaction vessels into builders' ware. The burden lay on the Department to prove the factual basis for the tariff classification adopted by it, and that burden was not discharged.

Conclusion: The goods were not classifiable as "Builders' ware" under Heading 39.25 and sub-heading 3925.10; classification under sub-heading 3926.90 was appropriate, and the duty demand, confiscation, penalty and allegation of mis-declaration could not stand.

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