TaxTMI 
TaxTMI 
1998 (10) TMI 185
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....ouse, Bombay vide his Order-in-Assessment, dated 7-2-1986 rejected the appellants' claim under Heading 84.35 as ancillary to printing machine on the ground that the said machine does not assist or take part in the process of printing and merely counts the papers. Hence the same cannot be considered as a machine for uses ancillary to printing. Hence it cannot be classified under Heading 84.35. The Assistant Collector approved the classification of the said machine under 84.59(i). 2. On appeal against the above Order of the Assistant Collector, the Collector of Customs (Appeals), Bombay, rejected the same by holding that the Catalogue showed the application in counting and batching of labels, business terms, calendar pads, cheques, computer cards, envelopes, leaflets, pads, tickets, legal documents etc. and as such the same cannot be considered as an ancillary machine to the printing. The said Order of the lower appellate authority is impugned before us. 3. Appearing on behalf of the appellants, Shri Gopal Prasad, learned Advocate has contended that counting of paper sheets before feeding to printing machine or after the printing of the sheets was a function which was....
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....ver the past few years, and it is increasingly necessary to minimise material waste and press time spent on printing unnecessary overs or reprinting for shortages. Consider what inadequate quantity control is doing to your business - then take a look at what the Vacuumatic VICOUNT can do to help..." "Count the cost of printing excessive overs. Count the cost of hand counting. Count the cost of reprinting shortages. Count the cost of departmental disputes. Count the cost of dissatisfied customers. Count the cost of shortages from the paper supplier." 6. This makes it clear that the paper counting machine in question is a machine for counting of papers after printing and accordingly, is a machine for uses ancillary to the printing. Explanatory Notes, while giving some instances under the Heading - "Machines for uses ancillary to printing" - give reference to stock or pile elevators, automatic feeders, sheet delivery mechanism, Folders, gummers, perforators and staplers. While explaining folders, gummers, perforators and staplers, it is written that these are often used, at the delivery end of the printing machine to fold and staple or stitch printed pages....
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....f illustrations. The type of machines mentioned in this note do not constitute the exhaustive list of ancillary machines and is apparent neither from the use of the word including in the note. At the same time it is significant that it is required to be shown that only that machines can be treated as a machine for uses ancilliary to printing which is exclusively designed to operate with the printing machines. 12. From the description and particulars of the machine explained before us, we observe that there is nothing in the material on record to show that the item in question is exclusively designed to operate with printing machines. On the contrary from the pamphlet regarding vacuumatic vicount paper counters that these are machines of general use and not designed for particular goods or industries. 13. The fact that as a result of its use, affects the cost is immaterial. What is important is that the pamphlet itself indicates as follows :- "The Vacuumatic VICOUNT can make an important contribution to the efficiency and profitability of printers and converters, large or small. The VICOUNT provides total counting accuracy for many different applications. - ....
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....d imported paper counting machine was classifiable under Heading No. 84.35 as a machine for uses ancillary to printing while according to the Vice President the same was rightly classifiable under Heading No. 84.59(1) as the machine having individual functions and as not falling within any other Heading of Chapter 84 of the said Tariff. 15. Shri Gopal Prasad, Advocate, appearing for the appellants submitted that the machine imported was usable in printing where the printing machine had no counting mechanism. The machine could handle large volume of paper and was useful to the printers in printing the exact number of required copies. He referred to the pages 1287-88 of the Customs Cooperation Council Nomenclature (CCCN) Explanatory Notes - Volume 3 (Second Edition - 1966) and page 112 of the Import & Export Policy, AM 1985-88, Volume I, and submitted that it was a machine designed to operate with printing machine. 16. Shri S.N. Ojha, JDR, replied that under Heading No. 84.35 machinery for uses ancillary to printing was covered, and that the reference was to the printing machine and not to the printing industry as a whole. He submitted that the learned Vice President ....