Plastic articles used in chemical plants were classified under Heading 3926.90, securing exemption under the linked notification.

Reinforced fibre glass plastic tanks, vessels, scrubbers and gratings used in chemical plants were treated as plastic articles and correctly classified under Heading 3926.90, because they were not shown to be builder's ware or otherwise excluded. On that classification, the benefit of Notification No. 132/86 was admissible, subject to satisfaction of its prescribed conditions. The assessee's classification was therefore sustained and the departmental challenge failed.

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Issues: (i) Whether tanks, vessels, scrubbers and gratings manufactured from reinforced fibre glass plastic were classifiable under Heading 3926.90; (ii) Whether the benefit of Notification No. 132/86 dated 01.03.1986 was admissible.

Issue (i): Whether tanks, vessels, scrubbers and gratings manufactured from reinforced fibre glass plastic were classifiable under Heading 3926.90.

Analysis: The articles were found to be plastic goods used in chemical plants. Tanks and vessels were not shown to be builder's ware or goods sold to builders. Scrubbers were treated as plastic shells of tanks and, like tanks and vessels, were held to fall within the plastics chapter. Gratings were also treated as plastic articles, and their use was held not to alter the tariff classification where the article itself remained an article of plastic.

Conclusion: The articles were correctly classifiable under Heading 3926.90.

Issue (ii): Whether the benefit of Notification No. 132/86 dated 01.03.1986 was admissible.

Analysis: Once the goods were held to fall under Heading 3926.90, they came within the class of goods covered by the notification, subject to fulfilment of the prescribed conditions. The exemption was therefore linked to the accepted classification.

Conclusion: The benefit of the notification was admissible.

Final Conclusion: The classification adopted by the assessee was sustained and the departmental challenge failed.

Ratio Decidendi: Plastic articles used in chemical plants, when not shown to be builder's ware or otherwise excluded, are classifiable under Heading 3926.90, and exemption under the relevant notification follows that classification when its conditions are satisfied.

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