9911796707
TMI Blog1990 (6) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... Schedule. However, the lower authorities classified the goods under Heading 40.16 (Sub-heading No. 4016.99) of the Schedule. Hence, the present appeal. 2. We have heard Shri V. Lakshmi Kumaran, Advocate, for the appellants and Shri S. Chakraborty, JDR, for the respondent-Collector. 3. The balloon is made of polyamide (nylon) silk fabric coated on both sides with rubber. According to the statement of facts in the appeal memorandum, the appellants have an air separation plant which produces both liquid oxygen as well as low pressure gaseous oxygen. The liquid oxygen is either sold as liquid or as high pressure oxygen gas in cylinders after conversion into gas. The low pressure oxygen is collected in a gas holder - the subject balloon - t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... schematic diagram of the plant showing the position of the gas holder has been submitted (page 1 of the appellants paper book). These prima facie do support the appellants contention that the balloon is an indispensable and integral part of their plant. The Revenue has not controverted the explanation of the balloon s function as set out by the appellants. However, the lower authorities have held that the balloon cannot be treated as a textile article for technical purposes to qualify for sub-heading 5911.90. It is a stationary article tethered by ropes and not attached with a particular machinery. Its main function is storage of gas. Since the rubber content predominated, the appropriate classification, according to the Assistant Collect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5911.20 Bolting cloth, whether or not - made up - Textile fabrics and felts, endless or fitted with linking devices, of a kind used in paper-making or similar machines (for example, for pulp or as bestos-cement) 5911.31 Weighing less than 650 - g/m2 5911.32 Weighing 650 g/m2 or - more 5911.40 - Straining cloth of a kind used in oil presses or the like, including that of human hair 5911.90 Other". - Now, according to note 2(a) to Chapter 40, textiles and textile articles falling in Section XI are not covered by Chapter 40. Note 7 to Chapter 59 reads as follows :- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, coated, covered or laminated with rubber and weighing not more than 1500 gms per square metre are classifiable as rubberised textile fabrics under Chapter 59 (Heading 59.06) and not Chapter 40. In the present instance, the weight of the fabric is, according to the supplier s telex, 950 60 gms per square metre. The rubber content is approximately 70%. The predominance of rubber in the fabric of the balloon does not, in our view, detract from the position that it is a textile fabric coated on both sides with rubber. 6. The learned DR, contends that since the balloon is a composite article, and its essential character (elasticity) is due to rubber, it falls under Chapter 40, by application of Rule of Interpretation 3(b). Further, the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inlet and an outlet. The inlet receives low pressure oxygen gas from the oxygen plant and oxygen vented from the liquid oxygen storage tank and from transport tankers. The outlet is connected to the oxygen compressor. The appellants contention that the balloon is not a mere storage tank but that it has a definite role to play in the plant - preventing the development of vacuum conditions in the plant with likely damage to it if the compressor were to be directly attached to the oxygen plant - remains unrebutted. 9. In the light of the foregoing discussion, we are of the view that the subject balloon falls for classification under Heading 59.11 (Sub-heading 5911.90) and not under Heading 40.16 (Sub-heading 4016.99). 10. In the above vi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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