9911796707
TMI Blog1998 (4) TMI 393X X X X Extracts X X X X X X X X Extracts X X X X ..... when fitted to the hose amounts to manufacture . 2. M/s. A.B.C. Synthetics P. Ltd., respondents herein, are engaged in the manufacture of (1) multi-layer plastic laminated braided tube/hose and (2) S.S. corrugated tube/hose, etc. falling under Chapters 39 and 83 respectively of the CETA. They filed classification list effective from 10-8-1990 declaring their product as braided PVC and claimed nil rate of duty under Notification No. 53/88, dated 1-3-1988. In respect of their other three products, namely, S.S. corrugated flexible hose with S.S. wire fitted on both ends with metal fittings, S.S. corrugated fitted on both ends with hose without wire braid fitted on both ends with metal fittings and S.S. interlock flexible hose fitted on bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . reported in 1987 (32) E.L.T. 583 and C.C.E. v. Motor Industries Co. Ltd. reported in 1989 (43) E.L.T 290. The Assistant Collector observed that there were two issues raised by the party before him, namely, (a) whether the product, 'braided PVC hoses can be considered for exemption under Notification No. 53/88 as per Sl. No. 26(ii) of the Table annexed to the said notification or the same would be liable to duty at the rate of 15% as per No. 26(i) of the Table to the said Notification and (b) whether the process of fixing metal fittings to the hose would amount to a process of manufacture and thereby the goods would become classifiable under Heading 8307 and become chargeable to duty at 15%. On the basis of the manufacturing process explai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... multilayer plastic laminated tube and therefore the PVC braided hose manufactured by the appellants would be covered by S. No. 26 (ii) of the Table annexed to Notification No. 53/88 attracting nil rate of duty. As regards the question whether the fixing of duty paid metal fittings on the steel corrugated flexible hoses will amount to manufacture, the Collector (Appeals) held that since the heading 83.07 covered flexible tubing of base metal with or without fittings, duty paid tubing bought out by the appellants when fitted with duty paid fittings at the appellants factory would not change the character of the item and also, the activity would not amount to manufac ture. The Collector (Appeals), therefore, set aside the findings of the Assi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s which resulted in a distinctively different item, different from the inputs that had gone into the production of the same, namely, S.S. corrugated hoses and various types of metallic fittings. He referred to the Tribunal decision in M/s. Brakes India v. C.C.E. [1987 (31) E.L.T. 1030] wherein it was held that brake hose assembly production by conversion of hose pipe by certain processes was a process amounting to manufacture. 6. In written submissions filed on behalf of the respondents it has been contended that they were not manufacturers of multilayer corrugated plastic hose nor of S.S. corrugated tube/hoses and they did not have the machinery to do so. They have submitted that the Expert opinion given by Shri Arvind S. Athalye, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, plastic film, bonding layer, etc. and are used essentially for packaging applications, PVC braided hose is nothing but a kind of reinforced pipe which has been given reinforcement of nylon, fibre, fabrics, etc. to improve its mechanical properties, particularly with respect to withstanding different kinds of pressures and also to improve its flexibility. Such braided hoses are used mainly for converting compressed air, oil circulation etc. As regards the aspect of any manufacturing process being involved in fixing metal fittings on the hose pipes, we find that the impugned goods, namely, S.S. corrugated flexible hose does not change its character of being a flexible hose even after they are fitted on both ends with metal fittings. It doe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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