Central Excise - Classification of textile hose pipes woven on circular loom and impregnated with rubber - Doubts regarding - Clarification thereof - Central Excise - 39/89

Central Excise - Classification of textile hose pipes woven on circular loom and impregnated with rubber - Doubts regarding - Clarification thereof Circular No. 39/89 Dated 30-6-1989 [From F. No. 99/4/89-CX.3(PT)] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Central Excise - Classification of textile hose pipes woven on circular loom and impregnated with rubber - Doubts regarding - Clarification thereof. A doubt had been raised as to whether textile hose pipes woven on circular looms and impregnated with rubber would be classifiable under heading No. 59.07 of the CET as 'textile hose pipes' or under heading No. 40.09 of the CET as 'rubber hose pipes'. 2. Reportedly, the product is made by weaving the synthetic yarn in circular looms in running length and then impregnated/coated with rubber on both sides. The product contains 12.5% polyester filament, 10.4% nylon filament yarn and the rest is hard vulcanised rubber compound. 3. The classification of the said product also came up for consideration in the East Zone General-cum-Tariff Conference, held at Calcutta on the 27th and 28th January, 1989. The Conference, relying on the Explanatory Notes under Heading No. 59.09 of HSN, viewed that the more appropriate classification appeared to be under sub-heading No. 4009.92 of the Schedule to the Central Excise Tariff Act, 1985. However, it was also desired that the opinion of the DGTD should be obtained before arriving at a final decision. 4. Accordingly, the opinion of the DGTD has been obtained. The DGTD has opined that the appropriate classification of 'Permaline Fibre Hose' would be within Heading No. 59.07 of the Schedule to the Central Excise Tariff Act, 1985. 5. The matter has been further examined by the Board. It appears that the Conference while deliberating on the classification issue of the said product relied on the Explanatory Notes under Heading No. 59.09 of HSN. Explanatory Notes under Heading No. 40.09 of HSN are also relevant, as per which the Heading No. 40.09 of HSN (which is similar to Heading No. 40.09 of the Schedule to the Central Excise Tariff Act, 1985) inter alia, covers vulcanised rubber tubes, pipes and hoses (including hose piping) re-enforced by stratification and consisting, for examples, one or more plies of textile fabrics or one or more layers of parallelised textile threads, or metal threads, embedded in the rubber, and this excludes tubes, pipes and hoses of textile materials sometimes called woven hoses, which have been water proofed with an internal coating of rubber latex or into which a separate rubber sheet has been inserted. It means that Heading No. 40.09 covers such vulcanised rubber hose piping wherein textile fabrics or threads get embedded by stratification. If the manufacturing process of the subject goods is taken into consideration, the classification under this heading is ruled out as no re-inforcing or embedding of textile fabrics or threads is involved. Moreover, hoses of textile materials sometimes called 'woven hoses' which have been water-proofed with an internal coating or rubber latex, have been excluded from the purview of Heading No. 40.09. 6. On the other hand, Heading No. 59.07 appears to be more appropriate. Heading No. 59.07 of the Schedule to the Central Excise Tariff Act, 1985 reads as follows :- 59.07. Textile hose piping and similar textile tubing, with or without lining, armour accessories of other materials. 7. 'Permaline Fire Hose' is nothing but textile hose-piping with rubber lining on both sides. The entry, therefore, perfectly fits in. From the explanatory Notes under Heading No. 59.09 of HSN (which is similar to 59.07 of the Schedule to the Central Excise Tariff Act, 1985), which covers hose piping e.g. hose and similar tubing of textile materials of a kind used for the passage of fluids, it is seen that such goods are usually made of heavy, closely woven fabrics of cotton, linen, hemp or man-made fibres, woven or sewn or in tubular form and may or may not be coated or impregnated with oil, tar or chemical preparations. The conference, relying on these notes, felt that, since the subject goods were not coated or impregnated with oil, tar or chemical preparations, as they have been lined with rubber, they would not appear to be classifiable under Heading No. 59.07 of the Schedule to the Central Excise Tariff Act, 1985. It may be pointed out that the said Explanatory Notes in HSN are only illustrative and not exhaustive, and at the same time not futuristic. It might not have been possible in such H.S.N. Notes to contemplate all types of situations. Therefore, it would be wrong to conclude that textile hose pipe lined on both sides with rubber is excluded from the purview of Heading No. 59.09 of HSN (H. No. 59.07 of Schedule to the Central Excise Tariff Act, 1985). If this is so, then with equal force, it could be said that they are included because there is no exclusion note specifically to that effect. 8. Moreover, para 2 of Explanatory Notes under Heading No. 59.09 of HSN states that textile tubing is also classified there if coated on inside with rubber or plastics, armoured with metal or fitted with non-textile accessories such as fittings for joining one section to another, nozzles etc. It would, therefore, follow that textile tubing with inside rubber lining is covered under Heading No. 59.09 of HSN. When this is so, there is no reason why textile tubing lined on both sides with rubber should not be classified there. 9. Besides, the explanatory Notes under Heading No. 59.09 of HSN may not be very much relevant inasmuch as Heading No. 59.07 of the Schedule to the Central Excise Tariff Act, 1985 squarely covers the subject goods as textile hose piping with or without lining has been specifically mentioned under this heading and there is no specific mention as to the type of the material required for the lining. As such, any material gets included here. 10. Accordingly, it is viewed that the most appropriate classification of the subject goods would appear to be under Heading No. 59.07 of the Schedule to the Central Excise Tariff Act, 1985. 11. The above guidelines may be brought to the notice of the lower field formations and the trade interests may also be suitably advised. 13. All pending assessments may be finalised on the above basis.