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TMI Blog1997 (10) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... aimed the benefit of Notification No. 59/87-Cus. Their claim was rejected by the Assistant Collector of Customs on the ground that the impugned goods were not used for production of any commodity as required under Notification No. 59/87-Cus. In appeal, the Collector of Customs (Appeals) by the impugned order set aside the Assistant Collector s order and held that Signing Machine imported by the present respondents would be eligible for the benefit of Notification No. 59/87-Cus., Hence the Departmental Appeal. 3. Shri A.K. Agarwal, SDR and Shri L.P. Asthana, Advocate appeared for the appellant Collector and the respondents respectively before us. 4. On behalf of the Department it has been urged that Notification No. 59/87 covered only go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Representative submitted that the Collector (Appeals) had wrongly held that the processes carried out by the Signing Machine are processes related to the production of the film and the machine has to be treated as used in the production of the film. Further if the Signing Machine is related to the production of the film, it cannot be deemed to be directly used for production of a film as Notification No. 59/87-Cus. relates only to machinery used for the production of a commodity. The Departmental Representative also contended that the Collector (Appeals) has wrongly held that the process of DX coding is essential for making the product marketable and the process of imprinting serial number/counter number is an essential process to enable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted film is then passed through another machine for perforation on both sides. After perforation, the film passes through another machine, namely, the Signing Machine, for imprinting the serial counter number and identification mark of the manufacturer, etc. After this, the film is sent to the spooling machine to cap the second end cap on to the cassette after inserting the spooled film into the cassette. Thereafter, the film, i.e., the roll of film, becomes ready for being sent to the market. As the film will be marketable only when it is capped into cassettes and packed for ready use in a camera, all the processes carried out on the film from the stage of Jumbo Roll Film till it reaches the stage where it is marketable and made acceptable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... packed in spools ready for use in camera. The use of the machine presently under consideration is at the stage of putting DX coding, numbering and imprinting the manufacturers name in the film before they are rolled in spools and sent to the market. We find merit in the learned Counsel s contention that without the process of DX coding the product will not be marketable. Having regard to these factors, we are of the view that Signing Machine would be eligible to be considered a machinery used for the production of film rolls. It would therefore, in our opinion, qualify for the benefit of the exemption under Notification No. 59/87-Cus. 7. In this view of the matter, we reject the appeal and confirm the order of the Collector (Appeals). ..... X X X X Extracts X X X X X X X X Extracts X X X X
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