1990 (4) TMI 126 - AT - Customs

Summary

Issues Involved:
1. Classification of the Automatic Developing Machine.
2. Applicability of photographic principles in the Developing Machine.
3. Interpretation of relevant headings under the Customs Tariff Act, 1975.
4. Reliance on explanatory notes and previous case laws.

Issue-wise Detailed Analysis:

1. Classification of the Automatic Developing Machine:
The appellants imported an Automatic Developing Machine and contested its classification under Heading 84.34 of the Customs Tariff Act, 1975 (CTA), whereas the Revenue classified it under Heading 90.10. The Collector (Appeals) upheld the Revenue's classification, prompting the appellants to appeal to the Tribunal.

2. Applicability of Photographic Principles in the Developing Machine:
The appellants argued that the Developing Machine does not involve photographic development processes. They contended that the machine uses hot water and alcohol to develop the correct thickness of carbon tissue paper and to remove its backing, without employing any photographic process or ultraviolet light. The Revenue maintained that the Developing Machine works on photographic principles, referencing detailed descriptions in the Order-in-Original about the machine's operation and its necessity for photographic purposes.

3. Interpretation of Relevant Headings under the Customs Tariff Act, 1975:
The appellants argued that the Developing Machine should be classified under Heading 84.34, which covers machinery for preparing or working printing plates or cylinders. They cited the Tribunal's decision in the case of M/s. Nyloprint Engravers, Calcutta v. Collr. of Customs, Calcutta, where a similar machine was classified under Heading 84.34. The Revenue, however, relied on the Explanatory Notes in the CCCN, which indicated that photographic apparatus like cameras, enlargers, and contact printers fall under Heading 90.10, thereby excluding the Developing Machine from Heading 84.34.

4. Reliance on Explanatory Notes and Previous Case Laws:
The Revenue cited previous decisions, such as M/s. Swatantra Enterprises v. Collector of Customs and M/s. Printasia Corporation v. Collector of Customs, where similar equipment was classified under Heading 90.10. However, the Tribunal noted that these cases involved different principles and items, such as Plate Processor Exposure units, which were not directly applicable to the Developing Machine in question.

Analysis and Conclusion:
The Tribunal analyzed the technical aspects and the process involved in the Developing Machine's operation. It was noted that the machine develops carbon tissue paper using hot water and alcohol, without any photographic process or exposure to light. The Tribunal referred to standard works on printing and the literature provided by the appellants, which supported their contention that the Developing Machine is part of the machinery required for preparing Gravure Cylinders and does not fall under photographic apparatus.

The Tribunal concluded that the Developing Machine is not an apparatus or equipment of a kind used in photographic or cinematographic laboratories. The machine is meant for developing carbon tissue paper, which is a part of the printing process. Therefore, the appropriate classification for the Developing Machine is under Heading 84.34, not Heading 90.10.

Final Judgment:
The appeal was allowed, and the Developing Machine was classified under Heading 84.34 of the Customs Tariff Act, 1975.