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Classification of goods under Customs Tariff Act, 1975 - Heading 84.34 vs. Heading 90.10 Analysis: The appeal involved a dispute over the classification of a "Nyloprint Wash-out Unit" under the Customs Tariff Act, 1975. The initial assessment by the Assistant Collector of Customs classified the goods under Heading 84.34, but upon re-examination, the Collector initiated review proceedings under Section 130(2) of the Customs Act, 1962, suggesting the goods should be assessed under Heading 90.10. The Collector's order was based on the argument that the machine in question falls under the description of apparatus and equipment used in photographic and cinematographic laboratories, as opposed to machinery for preparing printing plates under Heading 84.34. In the appeal, the Appellant contended that the Nyloprint Wash-out Unit is specifically designed for washing out un-hardened portions of polymer coating from printing blocks/plates, and is solely used in the printing industry for block making and nyloprint photo polymer plates. The Appellant argued that the machine falls under the scope of Heading 84.34, as it is machinery for preparing printing blocks, and there was no valid reason to change the initial assessment. The Appellant highlighted discrepancies in the Collector's decision, pointing out that while the machine was considered a plate processing unit for ITC license purposes, it was classified under an entirely different chapter, Heading 90.10, for customs duty purposes. The Appellant emphasized that the machine's function was distinct from equipment used in photographic or cinematographic laboratories, as it was primarily for washing and cleaning purposes, not for photo-copying or thermo-copying. The SDR, on the other hand, argued that the subject goods should be classified under Heading 90.10, as they are akin to goods used in photographic laboratories, such as washing apparatuses. The SDR contended that the Collector's decision to classify the goods under Heading 84.34 was questionable, as Chapter 16 excludes articles covered by Chapter 90, and the subject goods were essential components of a photographic laboratory. The SDR emphasized the importance of determining whether the goods were used in photographic or cinematographic laboratories, as per the relevant section notes. Upon considering the arguments presented, the Tribunal held that the Nyloprint Wash-out Unit was correctly classifiable under Heading 84.34. The Tribunal agreed with the Appellant's position that the machine's primary function was related to printing blocks and plates preparation, aligning with the scope of Heading 84.34. The Tribunal also noted the lack of evidence establishing the machine's usage in photographic or cinematographic laboratories, supporting the classification under Heading 84.34. Additionally, the Tribunal emphasized the commercial/common parlance test and ruled in favor of the Appellant, setting aside the Collector's order and allowing the appeal. In conclusion, the Tribunal's decision clarified the classification of the Nyloprint Wash-out Unit under the Customs Tariff Act, affirming its categorization under Heading 84.34 for preparing printing blocks and plates, and rejecting the Collector's attempt to reclassify it under Heading 90.10 for photographic or cinematographic laboratory equipment.
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