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TMI Blog1999 (4) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... hamber Model 603L and had sought classification thereof under Chapter Heading 9027.10. The Asstt. Collector did not accept the said classification and directed it to be classified under Heading 8479.89. The Collector of Customs (Appeals) confirmed the said order of the Asstt. Collector. The present appeal is directed against that order. 3. The appellant s case is that they are manufacturers of rubber tyres and in the process of manufacture of rubber the presence of ozone in the atmosphere affects the resistance capacity of rubber tyres and tubes. They explained that though the presence of ozone in the atmosphere was only at the level of 10 PPHM (Parts Per Hundred Million), it tends to attack rubber. To tackle this problem, they had to ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vidual functions, not specified or included elsewhere in Chapter 84. Notification No. 23/91 had granted exemption to goods falling under Chapter 90.27 from the payment of auxiliary duty. Ld. Counsel submitted that the impugned article was essentially a test machine comprising an atmosphere chamber, ozone generating equipment, ozone level measurement; control and recording system; temperature controller, mobile test piece carrier for inducing static strain etc. The instrument was used to generate ozone concentration and to test the deterioration of rubber. He also referred to the Annual Book 1988 of American Society for Testing and Materials (ASTM) in support of his above contention. Further, he also referred to Chapter Heading No. 9024.80 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. The Collector (Appeals) had mistakenly come to the conclusion that the main function of the item was to generate ozone whereas in actual fact, the machine was principally a testing machine for Research and Development Centre of the appellants and it was mainly required for purposes of carrying out several tests on the main material for manufacture of tyres and tubes, namely rubber. 5. Ld. DR Shri A.K. Agarwal referred to the observations of the Collector (Appeals). Collector (Appeals) had observed that though the appellants have contended that Ozone Test Chamber is used to find out the time and heat required in the presence of ozone for the rubber to crack, the rubber is taken out only to see whether cracking had taken place or not. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n severely attack non-resistance rubber if they are in the strained condition. It is for testing the resistance of rubber to ozone that the impugned machinery was imported. It is also seen from HSN Notes relating to Heading 90.24 that Chapter sub-heading 9024.80 would cover a wide range of machines and appliances for testing the hardness, elasticity, tensil strength etc. or various materials including rubber. From the extract of American Standards (American Society for Testing and Materials - Annual Book of Standards-1988) relied on by the appellants it is seen that the standard test method for Rubber Deterioration was surface ozone cracking in a chamber. The significance and use of the machine is explained as under : 4. Significance a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re hold that is in the nature of a testing equipment. 8. We observe that Chapter Heading 90.27 which, inter alia, covers instruments and apparatus for measuring, among other things; surface tension or the like would cover the functions discharged by the item in question. Chapter Heading 84.79 on the other hand covers machines and mechanical appliances having individual functions not specified elsewhere. Having regard to the features of the article in dispute, we agree with the submissions made by the Counsel for the appellants that the more appropriate classification for Ozone Test Chamber Model 603L imported by the appellants would be 9027.80 and not 8479.89. 9. The appeal is accordingly allowed with consequential benefits to the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d therein are only by way of examples which goes to show that it does not exclude rubber. The position becomes more clear when we see the HSN. Heading 90.24 of HSN is pari-materia with the corresponding customs heading and the explanatory note specifically includes rubber in the examples of various materials the properties of which are tested by appliances falling under this heading. It may however, be pointed out that Heading 90.24 of HSN excludes instruments for detecting faults, fissures/cracks or other defects in materials classifiable under Heading 90.31. The imported item in question is admittedly meant for testing rubber deterioration due to surface ozone cracking. A question, therefore arises whether the item was hit by the exclusio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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