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TMI Blog2000 (8) TMI 463X X X X Extracts X X X X X X X X Extracts X X X X ..... as mantles and Rs. 21 lakhs on paper bags manufactured by it, used for packing these mantles. 2. The process of manufacture of these fabrics in essence is as follows. The tubular fabric is knitted from viscous rayon yarn. The fabric is thereafter impregnated with chemicals, thorium, aluminium nitrate, cerium, which are necessary to give the product the mantle its attributes. It is then cut to smaller shapes, and the ends tied and thereafter these stages are ironed into a circular disc and packed. The mantle manufactured by the appellant is attached to high pressure kerosene lantern. The Encyclopaedia of Chemical Technology, Kirk and Othmer narrates that the heat produced in this lantern burns away the cellulose leaving behind the oxides. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant are solely used with kerosene pressure lantern. It is therefore not in dispute that these mantles are classifiable under sub-heading 9405.10. That being the case, the gas mantle specified in heading 59.08 have necessarily to be gas mantle other than gas mantle for use in kerosene pressure lantern. That mantle that is manufactured for use in lantern other than kerosene pressure lantern is clear from a reading of the Encyclopaedia of Chemical Technology by Kirk and Othmer. It referred to mantles for use with propane, benzene etc. Such mantle itself would be classifiable under heading 59.08. Tubular kerosene gas mantle fabric therefor (emphasis supplied) would also be classifiable under this heading. 5. The fabric we are conce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he change in sub-heading 10 in our tariff therefore is a deviation which significantly alters the classification of gas mantle. But for this change, all gas mantle and fabrics therefor would be classifiable in heading 59.08, both under the HSN and Indian Tariff. As a result of this change, gas mantle for use in kerosene lantern will not be classifiable under 59.08, but are classifiable under sub-heading 10 of heading 94.05. The effect of sub-heading 10 is therefore, inter alia, to exclude the fabric from classification 59.08 mantle for kerosene lantern. Inevitably, the result of this, as we have seen, the tubular fabric for such mantle will also be excluded from the tariff. 7. We have so far considered the position as it existed (after 16 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are not in the piece or cut to shape or size. They are in running length. It is difficult to view them as textile article. It is only the fabric that has been adapted or modified to suit a particular application that could be considered as an article. The example of endless felts of fabrics as distinct from felt fabrics is significant. While these goods have not acquired the quality of an article they would not be classifiable under this heading. The same reasoning would apply to the goods under consideration. 9. The remaining part of the demand is on the ground that the benefit of notification based on the value of clearance such as 1/93 and its successor notification would not be available and therefore duty is not payable on the paper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cally alleges that duty is payable for the reason that goods are classified under 59.08 and not under heading 60.01, on which no duty is payable. The second argument relates to the applicability of a small scale exemption. It is contended that, granting the claim of the appellant on the basis on which duty has not been paid, the fabrics were classifiable under 59.01. The benefit of these notifications will not apply for the reason that this fabric is not one of the item specified in the table to Notification 1/93 or 16/97 and 8/98, its successors. We do not see the relevance of this argument. Each of the notification provide (for example, paragraph 3A of Notification 1/93) that in computing the value of the clearance the value of goods exem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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