TaxTMI 
TaxTMI 
1989 (12) TMI 199
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.... Act, 1985. 2. The appellants, a composite textile mill owned by M/s Indian Rayon and Industries Limited, commenced manufacture of a new product called Permaline Fire Hose (Synthetic) of different sizes in 1987. They filed the classification lists in respect of these products claiming classification under Heading 59.07 chargeable to duty at the rate of 12% ad valorem. The Assistant Collector of Central Excise issued a show cause notice dated 9-11-1987 seeking to classify such hose pipes under Chapter 40 and more particularly under sub-heading 4009.92, chargeable to duty at the rate of 30% ad valorem. The show cause notice was issued on the basis of the allegation that rubber compound being 76.1% by weight of the total content and the pro....
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....ating on both sides of the synthetic jacket, fire hose retains its essential characteristic of textile hose pipe. The Chemical Examiner's Report dated 25-3-1987 states that the sample is received in cut piece of red coloured hose pipe having width of 9.9 c.mtr. In the construction of fabric synthetic filament yarn of polyester has been used in one direction and synthetic filament yarn of polymine (nylon) has been used on the other direction. Rubber compound is coated on both sides of the fabric portion. The composition of sample is : 1. Percentage of film 12.5 by weight 2. Synthetic Polyester (Nylon) filament yarn 11.47 3. Rest is rubber compound unhardened and vulcanised. Thus, the report clearly establishes that the product co....
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....r pipe or hose of rubber but it is a textile tube coated on both sides with rubber. The report of the Chemical Examiner shows that Permaline Fire Hose is fabric of synthetic yarn woven on circular looms on which rubber compound was coated on both sides of the fabric. All the goods covered under Heading 40.01 to 40.17 are either rubber or products thereof except goods falling under Heading 40.10 where, in view of Chapter Note 8 conveyor or transmission belts or belting of textile fabric impregnated, coated, covered etc. with rubber are included. Heading 40.09 excludes tubes and hoses which have been waterproofed with rubber, as such article falls under 59.09. 10. From the above discussion it is clear that Permaline Fire Hose manufactured ....
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....rm, and may or may not be coated or impregnated with oil, tar or chemical preparations. Textile tubing is also classified here if coated on the inside with rubber or plastics, armoured with metal (e.g. with a spiral of metal wire) or fitted with non-textile accessories such as fittings for joining one section to another, nozzles etc. Tubes, pipes and hoses of vulcanised rubber reinforced internally with textile material or covered with an external sheath of thin fabric are to be classified in Heading 40.09.". 13. Permaline Fire Hose being an article of textile falling under Section XI (Textile and Textile Articles) of the Schedule to the Tariff Act, is outside the purview of Chapter 40 as per Chapter Note 2(a) of the said Chapter whic....