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Interpretation of Notification No. 59/87-Cus regarding the eligibility of a Signing Machine for the benefit under the notification. Detailed Analysis: Issue 1: Interpretation of Notification No. 59/87-Cus The case involved a dispute over the interpretation of Notification No. 59/87-Cus regarding the eligibility of a Signing Machine imported by M/s. Jindal Photo Films Ltd. for the benefit under the notification. The Assistant Collector of Customs initially rejected the claim, stating that the machine was not used for the production of any commodity as required by the notification. However, the Collector of Customs (Appeals) overturned this decision, ruling that the Signing Machine was eligible for the benefit. The Department contended that the machine did not fall under the specified sub-headings in the notification and did not contribute to the production of a commodity. They argued that the machine only added identification marks to the film and did not play a role in the actual production process. On the other hand, the respondents argued that the concept of production involved a series of processes transforming raw material into a marketable commodity. They highlighted the importance of the Signing Machine in the production process, specifically in adding DX coding and other essential markings to make the film marketable. The Tribunal considered the arguments and the Apex Court's decision on the concept of production, concluding that the Signing Machine qualified as machinery used in the production of film rolls. Therefore, the Tribunal upheld the Collector (Appeals) decision, granting the benefit of the exemption under Notification No. 59/87-Cus to the respondents. In conclusion, the Tribunal rejected the Departmental appeal and confirmed the order of the Collector (Appeals), determining that the Signing Machine was eligible for the benefit under Notification No. 59/87-Cus as it played a crucial role in the production process of film rolls, making them marketable.
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