1998 (8) TMI 289 - AT - Customs

Summary

Issues Involved:
1. Classification of photocomposing machine under Tariff Heading 84.2 or 84.71.
2. Applicability of Notification No. 114/80-Cus. and Notification No. 217/90-Cus.

Classification Issue Analysis:
The dispute revolves around the classification of a photocomposing machine under Tariff Heading 84.2 or 84.71. The original authority classified it under 84.71 as an automatic data processing machine, while the lower appellate authority considered it a photocomposing machine based on specific functions. The lower appellate authority relied on a Collector's conference decision regarding similar machines. The Revenue appealed, arguing that the machine should be classified under 84.71 due to differences in output devices. However, the respondents contended that the machine's function remained the same as considered in the conference decision. The ld. Advocate for the respondents cited Chapter Note 5 of Chapter 84 and Section Note 4 of Section XVI to support the classification under 84.42 due to the machine's specific function. The Tribunal agreed with the respondents, emphasizing the machine's photocomposing function under 84.42, dismissing the Revenue's appeal.

Applicability of Notifications Issue Analysis:
The second issue concerns the applicability of Notification No. 114/80-Cus. and Notification No. 217/90-Cus. The lower appellate authority extended the benefit of the latter notification to the respondents based on a certificate from the Registrar of Newspapers. The Revenue contended that the certificate only addressed essentiality, not technical aspects. However, the Tribunal noted that the machine was indeed a photocomposing machine, as certified by the Registrar of Newspapers, justifying the extension of Notification No. 217/90-Cus. The appeal of the Revenue was consequently dismissed.

In conclusion, the Tribunal upheld the classification of the photocomposing machine under Tariff Heading 84.42 and affirmed the extension of benefits under Notification No. 217/90-Cus. based on the machine's specific function and certification by the Registrar of Newspapers.