TaxTMI 
TaxTMI 
1990 (8) TMI 234
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....Act, 1975, namely, Heading 39.01/06. The dispute is as to the applicability of customs Notification No. 196/84 dated 7-7-1984. The appellants contend that the notification applies. The Revenue contends to the contrary. 3. The lower authorities have held that the product is meant for semi-conductive shielding of power cables and not for insulating, impregnating or filling purposes and that, therefore, the notification does not apply. The goods were described in the covering invoices and bills of entry as "semi conductive XLPE compound HFDM 0595 BK". The Customs House laboratory report indicated that the product was a pigmented polyolefinic type synthetic resin on which also there is no dispute according to the appellant's counsel. But the D....
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....shielding on crosslinked insulated high voltage cables. The polymer system employed in HFDM 0595 Black allows direct extrusion of this compound on copper without the excessive adhesion or staining on the metal." Then it goes on to set out, in tabular form, typical electrical properties and physical properties of cables with conductor and insulation shieldings of the product using sound commercial fabrication practice. It adds :- "HFDM 0595 Black provides excellent surface finish and outstanding output taken over a broad range of conditions. For optimum results, use melt extrusion temperatures in the suggested range of 120 to 130 C. However, specific recommendations for processing condition can be determined only when the application and t....
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....the books cited go to show that insulating compounds are made from cross linked polyethylene. The subject product, as seen from the manufacturer's literature, is not a cross-linked polymer but a cross-linkable polymer. In the condition in which it is imported, it cannot be used for insulation. And, it is the condition at the time of the import that is relevant for the purpose of classification, reliance for this purpose being placed on the Supreme Court's judgment in Dunlop India Ltd. & Madras Rubber Factory Ltd. v. Union of India & Others - 1983 (13) E.L.T. 1566 (S.C.). The principle applies also to notifications. Reference is made to "The Encyclopedia of Chemistry" - Third Edition - by Clifford A. Hampel and Gessner G. Hawley where at pa....
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....oduct in issue? No doubt it is described as a cross linkable polyethylene copolymer for semi-conductive shielding of power cables and as a cross linkable semi-conductive compound formulated to meet the resistivity requirements for conductor and insulation shielding on cross linked insulated high voltage cables. It allows direct extrusion on copper. The product may be applied as an insulation shield either in a separate operation or in triple extrusion. It is clear from all this that the product finds application in insulation shielding. 12. The book "Encyclopedia of Chemistry" relied on by the DR also shows that cross-linkable polyethylene compounds used for wire insulation are essentially based on low-density resins. It also shows that cr....