1990 (6) TMI 134

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....ssment under Heading No. 59.11 (Sub-heading 5911.90) of the Schedule. However, the lower authorities classified the goods under Heading 40.16 (Sub-heading No. 4016.99) of the Schedule. Hence, the present appeal. 2. We have heard Shri V. Lakshmi Kumaran, Advocate, for the appellants and Shri S. Chakraborty, JDR, for the respondent-Collector. 3. The balloon is made of polyamide (nylon) silk fabric coated on both sides with rubber. According to the statement of facts in the appeal memorandum, the appellants have an air separation plant which produces both liquid oxygen as well as low pressure gaseous oxygen. The liquid oxygen is either sold as liquid or as high pressure oxygen gas in cylinders after conversion into gas. The low pressure ....

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....pressor a Gas Holder has to be provided by the appellant". A schematic diagram of the plant showing the position of the gas holder has been submitted (page 1 of the appellants' paper book). These prima facie do support the appellants' contention that the balloon is an indispensable and integral part of their plant. The Revenue has not controverted the explanation of the balloon's function as set out by the appellants. However, the lower authorities have held that the balloon cannot be treated as a textile article for technical purposes to qualify for sub-heading 5911.90. It is a stationary article tethered by ropes and not attached with a particular machinery. Its main function is storage of gas. Since the rubber content predominated, th....

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....imilar fabric for other technical uses     5911.20 Bolting cloth, whether or not -  made up       - Textile fabrics and felts, endless or fitted with linking devices, of a kind used in paper-making or similar machines (for example, for pulp or as bestos-cement)     5911.31 Weighing less than 650 -  g/m2     5911.32 Weighing 650 g/m2 or -  more     5911.40 - Straining cloth of a kind used in oil presses or the like, including that of human hair     5911.90 Other". -    Now, according to note 2(a) to Chapter 40, textiles and textile articles falling in S....

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....and other machinery parts]." According to note 4(a) to Chapter 59, textile fabrics impregnated, coated, covered or laminated with rubber and weighing not more than 1500 gms per square metre are classifiable as rubberised textile fabrics under Chapter 59 (Heading 59.06) and not Chapter 40. In the present instance, the weight of the fabric is, according to the supplier's telex, 950 +/- 60 gms per square metre. The rubber content is approximately 70%. The predominance of rubber in the fabric of the balloon does not, in our view, detract from the position that it is a textile fabric coated on both sides with rubber. 6. The learned DR, contends that since the balloon is a composite article, and its essential character (elasticity) is due t....