Base-metal storage tanks classifiable as containers under the tariff, despite not being ordinary packing containers

Storage tanks and vessels manufactured for containing liquids were treated as containers of base metal rather than articles excluded for not being ordinary packing containers. The tariff distinction in the relevant period separated articles of iron or steel from containers of base metal, and the packaging-for-sale condition applied only to specified sub-headings, not to Heading 8312.90. On that basis, the exclusion relied on by the lower authority was unsound, and classification under Heading 8312.90 was upheld over Heading 7308.90.

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Issues: Whether storage tanks and vessels manufactured for containing liquids, prior to 1-3-1988, were classifiable under Heading 7308.90 or under Heading 8312.90 of the Central Excise Tariff Act, 1985.

Analysis: The goods were found to be storage tanks and vessels used for containing liquids and, therefore, containers. For the relevant period, the tariff scheme drew a distinction between articles of iron or steel and containers of base metal. The condition that containers be ordinarily intended for packaging of goods for sale applied only to specified sub-headings and not to Heading 8312.90. Since the goods were not packing containers but still remained containers of base metal, the exclusion relied on by the lower appellate authority was held to be unsound.

Conclusion: The goods were correctly classifiable under Heading 8312.90 and not under Heading 7308.90. The classification adopted by the Revenue was upheld.

Final Conclusion: The appeal was allowed and the classification in favour of the Revenue was sustained.

Ratio Decidendi: Where base-metal containers are not shown to fall within the specific packing-container sub-headings, their classification under the residual base-metal container heading cannot be denied merely because they are not ordinarily intended for packaging goods for sale.

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