9911796707
TMI Blog1999 (3) TMI 281X X X X Extracts X X X X X X X X Extracts X X X X ..... tate of Bihar. 1.2 The process of manufacture of cables by the appellants involves drawing of copper conductors which are then insulated with Polyethylene (MDPE or HDPE). The insulated conductors are twisted together to form pairs which are then stranded to form cable cores of the required number of pairs (e.g. 10, 20, 50 etc.). These cable cores are then filled with a water resistant compound viz. jelly and wrapped with a Polyester tape. The filled cable is then sheathed with a low density Polyethylene compound. Before sheathing, the cable is covered with an Aluminium Cable Core Wrap coated on both sides with Polyethylene (Poly. Al Tape). The Poly. Al Tape is provided longitudinally over the cable core with a minimum overlap of 5 mm and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Manifold Assembly (made of Aluminium) mounted on the bottom of the hot melt tank. In the Distribution Manifold Assembly the hot adhesive is filtered with a Reverse Flush Filter and distributed to the Heated Hose and Heated Extrusion Gun. The manifold is also heated by the tank heaters to keep the adhesive in melted condition at a particular temperature. The Hose of the equipment is a hydraulic hose with teflon liner reinforced by stainless steel braid and has electrical connectors at both ends. A resistive type of heating wire is wrapped spirally around the steel braid for generating heat. The temperature in the hose is monitored and controlled by a Resistance Temperature Detector in the hose wall. Through the Hose the hot adhesive is carr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Customs Authorities, however, did not agree with the above classification of the appellants and classified the goods as falling under 8479.89 of the Customs Tariff Act and assessed the same to duty as per the details given below :- Basic duty (i) : @ 65% Ad valorem Auxiliary duty (ii) : @ 30% Ad valorem under Notification No. 193/92 Additional duty (iii) : @ 15% Ad valorem +Special Duty @ 15% on C.V. 4. The appellants protested against the above classification and requested the Assistant Commissioner of Customs, Air Cargo Complex (Imports) to adjudicate upon the matter. They also filed and placed a technical literature before the Assistant Commissioner, who after physical re-exa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Serial No. 17 of Notification No. 59/87-Cus., dated 1-3-1987 prescribes concessional rate of duty in respect of the goods described against the same. Apart from mentioning few sub-headings of Heading 84.24, it also grants concessional rate to the mechanical appliance (whether or not hand operated) for spraying liquids or powders other than paint, varnish, oil, dis-temper or cement. We find that the present equipment is not used for spraying paint, varnish, oil, distemper or cement and is meant for applying molten adhesives through an electrically heated extrusion gun with nozzles. As the equipment is a mechanical appliance used for spraying liquids other than paint, varnish, oil distemper or cement, we find that the same would get covered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fied it u/h 8479.89 and the Asstt. Collector had erred in reassessing it u/h 8424.20 denying them the benefit of Notification No. 59/87 (allowing only the benefit of Notification No. 69/90). 11. They drew attention towards their manual indicating technical details of the product ; and pleaded that alternatively, it may be classified under Heading 84.19 which includes, inter alia, Machinery, plant or laboratory equipment, whether or not electrically heated, for the treatment of materials by a process involving a change of temperature by heating .......... on the ground that in their case also electrical heating results in changes of temperature. Further they have also pressed their claim of benefit for Notification No. 59/87 (as amended) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... zzle. 15. Again, the Department was justified in classifying it under 8424.20 as it is similar to spray guns. 16. At the hearing stage, the ld. Counsel has mainly confined himself to his alternative prayer for the benefit of Notification No. 59/87 whereas the Department has insisted on allowing the benefit only of Notification No. 69/90. Notification No. 69/90, however, does not cover such goods; It exempt only those goods which fall under the specified headings of Chapter 52. Therefore, we hold that the Asstt. Collr. had erred in applying this Notification. 17. On the other hand, the Notification No. 59/87 as amended by Notification No. 57/89 covers, inter alia , mechanical appliances (whether or not hand-operated) for spraying, liqu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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