Chapter 98 classification for plastic printing-machine parts upheld, securing exemption under the customs notification.

Dampening sleeves made of plastic, used as specially designed parts of offset printing machinery, were treated as classifiable under Heading 98.06 because Statutory Note (1) to Chapter 98 gives that Chapter overriding effect when its conditions are satisfied. Their earlier assessment under Heading 3926.90 did not prevent classification as parts for notification purposes, and the textile-related exclusions under Section XVI were inapplicable because the goods were not made of textile material. On that basis, the exclusion clause in Notification No. 69/87 did not apply, and the goods were eligible for the exemption as parts of printing machinery.

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Issues: Whether dampening sleeves made of plastics, used as specially designed parts of offset printing machinery, were classifiable under Heading 98.06 and eligible for the benefit of Customs Notification No. 69/87, notwithstanding their earlier assessment under Heading 3926.90.

Analysis: The goods were treated as specially designed parts for use in offset printing machinery. Statutory Note (1) to Chapter 98 was applied to give Chapter 98 overriding effect where the prescribed conditions are satisfied, even if another heading may otherwise appear more specific. The reasoning also accepted that goods made of plastics, and not of textile material, did not fall within the textile-related exclusions under Section XVI. On that basis, the classification under Chapter 39 did not displace their treatment as parts under Heading 98.06 for the purpose of the notification. Since Notification No. 69/87 extended exemption to parts falling under Heading 98.06 and printing machinery was covered in the notification table, the exclusion clause did not apply.

Conclusion: The goods were held eligible for classification under Heading 98.06 for the purpose of the notification and entitled to the benefit of Notification No. 69/87. The assessee succeeded.

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