TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal rules on classification of braided PVC and S.S. hoses under Chapter 3917, denying exemption</h1> <h3>COLLECTOR OF CENTRAL EXCISE, BARODA Versus A. BC SYNTHETICS P. LTD.</h3> COLLECTOR OF CENTRAL EXCISE, BARODA Versus A. BC SYNTHETICS P. LTD. - 2000 (126) E.L.T. 1027 (Tribunal) Issues: Classification of braided PVC hose and S.S. corrugated hose/tube, entitlement to exemption under Notification No. 53/99-CC, and whether fixing metal fittings on the hose amounts to 'manufacture'.Classification of Braided PVC Hose and S.S. Corrugated Hose/Tube:The case involved the classification of products manufactured by M/s. A.B.C. Synthetics P. Ltd., specifically braided PVC hose and S.S. corrugated hose/tube. The company had declared their products differently in the classification list, claiming nil rate of duty for braided PVC under Notification No. 53/88. The Department raised concerns through a Show Cause Notice (SCN) regarding the classification of braided PVC hose as a multilayer plastic laminated tube chargeable at 15% ad valorem. The Assistant Collector determined that the braided PVC hose was a multilayer product and correctly classifiable under Chapter sub-heading 3917, denying the company the benefit of the exemption. Additionally, the Assistant Collector found that fixing metal fittings on S.S. corrugated flexible hoses constituted a manufacturing process, classifying the product under Heading 8307 and subjecting it to 15% duty.Entitlement to Exemption under Notification No. 53/99-CC:The Collector (Appeals) reversed the Assistant Collector's findings, stating that the braided PVC hose should be covered under S. No. 26 (ii) of the Table annexed to Notification No. 53/88, attracting a nil rate of duty. Regarding the metal fittings fixed on S.S. corrugated flexible hoses, the Collector (Appeals) concluded that the activity did not amount to manufacture under Heading 83.07. The Department argued that the braided hose was not primarily for agricultural irrigation, and the process involved in fixing metal fittings resulted in a distinctively different product. The respondents contended that the fixing of metal fittings was not a manufacturing process, citing previous Tribunal decisions.Whether Fixing Metal Fittings on the Hose Amounts to 'Manufacture':The Tribunal considered expert opinions and previous judgments to determine whether fixing metal fittings on S.S. corrugated flexible hoses constituted a manufacturing process. The Tribunal found that the braided hose and the S.S. corrugated flexible hose did not change fundamentally after fittings were added, maintaining their original characteristics and uses. The Tribunal referenced a previous order involving the same respondents, where it was held that fixing metal fittings on S.S. corrugated flexible hoses did not amount to manufacture. Consequently, the Tribunal dismissed the Department's appeal, affirming that the fixing of metal fittings did not constitute a manufacturing process.In conclusion, the Tribunal upheld the classification of the braided PVC hose and S.S. corrugated hose/tube, denied the exemption under Notification No. 53/88 for the braided PVC hose, and determined that fixing metal fittings on the hoses did not amount to 'manufacture', resulting in the dismissal of the Department's appeal.
TaxTMI 
TaxTMI 
