AI Drafter 
TaxTMI 
TaxTMI 
1990 (4) TMI 126
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....om with the help of actinic light, while they had maintained before the Collector (Appeals) that the sensitised carbon tissue paper, which being printed is subjected to actinic light in the dark room, but the Developing Machine has nothing to do with the printing of carbon tissue paper. It is after the printing of the carbon tissue is over, with the help of vacuum frame and actinic light, that it is required to be developed, and Developing Machine comes into picture at this stage only. There is no ultra violet light used in the Developing Machine and only hot water is used by them. (b) The Collector of Customs (Appeals) has erred in holding that the Developing Machine is used to develop photographically exposed surfaces, as the machine is not required for photographic purposes. That unlike in the process of photographic development, Developing Machine requires no developing agent. There is no chemical action as in the case of developing the films. (c) The Collector (Appeals) had not given any finding on their contention that the Developing Machine is part and parcel of other machines viz. Transferring Machine and Etching Machine required to make Gravure Cylinders and that und....
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....e how the Assistant Collector has viewed the matter. The standard works on printing which have been relied upon are :- (i) Printing Technology, 2nd Edition (1982) by Adams and Faux, USA - Page 456 to 473; (ii) Practical Printing and Binding - 3rd Edition (1965), published by Odhms Books Ltd., London - Page 268 to 273; (iii) The Printing Industry by Victor Strauss (1967), published by Printing Industries of America, USA - Page 235 to 252. From the above contentions, it has been elicited that there are basically four ways to prepare Gravure Cylinders viz.:- (i) By Diffusion etch; (ii) By direct transfer; (iii) By the electromechanical process; and (iv) By laser cutting. The first two methods are photo-mechanical in nature, by which these processes depend both on photography, mechanical and chemical method. The machinery under dispute covers the first process viz. diffusion etch. "In this system, the carbon tissue paper - which is a gelatin-based material coated on a paper backing - is sensitized by immersing the material in a 3% to 4% potassium bichromate solution. The sensitized carbon tissue is placed emulsion - side up on a vacuum frame for exposure - sc....
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....ppeal in the following manner for upholding the classification under Heading 90.10, C.T.A.:- "It is the case of the appellant that the impugned goods are for preparing or working printing cylinders in terms of coverage of Heading 84.34 and not photographic apparatus in terms of Heading 90.10. The single factor determining the classification would be the manner in which the machine works. The developing machine develops sensitised carbon tissue paper or Roto film which is contact printed in a dark room with the help of actinic light. Thus the developing machine is used to develop photographically exposed surfaces. The CCCN Notes at page 1553 clearly indicates that specialised equipment used in reproduction work falls under Item 90.10. One of the examples given under this heading is apparatus for developing specially sensitised paper by ammonia vapour process. The developing machine in question also develops sensitised carbon tissue paper although a different method is used. The description of the machine for making printing cylinders is given under Item 84.34 of CCCN Notes, there is a specific exclusion of photographic cameras, enlargers or reducers, photographic contact print....
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.... carrier, a plate or a cylinder, in one of several techniques, either manually or mechanically. This step is known as laydown and the machines used for this purpose are called laydown machines; they are equipped with precision positioning devices. The laid-down tissue is next developed with hot water. The water penetrates the paper backing and melts the unhardened layer of gelatin close to it. The backing paper can now be removed and the tissue is further treated with water until the image is completely developed. Then the image carrier with the developed tissue on its surface is dried and subjected to several manual operations by which it is prepared for etching. Carbon-tissue is a very critical material that must be handled with care and closely controlled in each of the many operations through which it passes, from storage to the Final etching of the image carrier." From the various references made, the clear conclusion emerges that the machine is for developing carbon tissue, during the entire process of printing. The appellants have also pointed out that the Developing Machine is a part and parcel of the other machines viz. Transferring Machine and Etching Machine required ....