TaxTMI 
TaxTMI 
1989 (11) TMI 142
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....f India Ltd. manufacture printing ink. The appellants imported two high speed and high efficiency dispersion Mills type 813/1 and 913/1. The assessment of the machines was made under 84.59(1) of the Customs Tariff whereas the appellants claim assessment under 84.59(2). 3. In respect of Appeal No. C/159/85-B the Collector of Customs, Calcutta has held that the machine should be assessed under 84.59(1). The appellants have stated that similar mills imported in 1980 were assessed at a lower rate under Heading 84.59 (2) of the Customs Tariff. They have not given the specific cases. In their appeal memorandum the appellants have narrated the function of the dispersion mills which is for the process of dispersing of pigments by the liquid media ....
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....for the manufacture of printing ink. He also contended that the catalogue would show that these are roller grinding machines which are suited for fine grinding of paints and printing inks as well as other paste substances and these are specifically designed for the manufacture of printing ink. He also raised the point, as to whether the Collector was right in holding that grinding was not a 'process of manufacture'. As to what constitutes manufacture, the Learned Advocate referred to the following case laws :- 1. 1986 (26) E.L.T. 341 (Tribunal) - Collector of Customs, Bombay v. M/s. Dura Foam Industries Foam cutting machine which would fall under 84.59 (2) Cutting of foam blocks leads to production of different foam products and classifi....
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....84.59 (2). 7. In considering the submissions made, the issue involved is whether this will be a machine designed for the production of a commodity. Referring to the function of the Dispersion Mills it is to break up the agglomerate of pigment particles and wetting by the fluid media in an uniform manner. In so far as this machine is concerned it is designed for adaptation either for application for paints or printing inks. For each adaptation the throughput is dependent on the fineness varying in dimension of roller, machines and weight of the machine. The Collector has held the view that the machine being suited for grinding of paints, printing inks as well as other pasty substances cannot be considered as designed for production of a com....