TMI Blog1993 (10) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... be .......a film of polyethylene coated on one side with carbon. After .issuing a show cause notice and considering their representation and hearing them, the Deputy Collector passed an order, the relevant portion of which is as under :- .......heading 96.12 covers typewriter or similar ribbons etc. and the subject goods cannot be treated as ribbons. The importers have contended that these films will be slit and subjected to further processing and then typewriter ribbons would be made. The classification of imported goods is to be decided depending on the form in which the goods are imported and not by their end use or final shape that may emerge after further processing and manufacturing activity. In the instant case the goods are only in sheet/film form and typewriter ribbons would have to be made after much manufacturing activity. Hence the goods are not classifiable under Heading 96.12. The goods are correctly classifiable under Heading 39.20. I have also examined the sample of the subject goods and find that these may be called polyethylene films coated on one side with carbon. Hence as regards I.T.C. restrictions these fall within the ambit of entry 404 of Appendix 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e special character of typewriter ribbons in view of the provisions of Rule 2 (a) of the General Rules for the Interpretation of the Customs Tariff. He tried to explain that once the polyester film is inked, it becomes unsuitable for any other use and the process of inking imparts to it its essential character of a typewriter ribbon. He submitted that the authorities have laid undue emphasis on the physical dimensions and have overlooked the essential character of the goods. He also submitted that the description of the goods in the invoice as Correctable Film Ribbons , though in the form of Jumbo Rolls 660 mm wide, indicate the true nature of the goods imported. He went on to say that since the goods have been described as ribbons, there is no reason why they should be considered to be different and classified as Polyester Film under Chapter 39. The moment a Polyester Film is inked it becomes a ribbon for the purpose of giving an impression which is the attribute given to it in sub-heading 96.12. 8. Elaborating on his submissions, Shri Nankani explained with reference to the Explanatory Notes of the HSN for sub-heading 96.12 and read out the following portion from there to emph ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion would arise only when classification cannot be determined according to the terms of the headings and any relative Section or Chapter Notes. He, therefore, submitted that the reference to Rule 2(a) of the Rules of Interpretation by the learned Counsel for determining the essential character of the article was mis-placed. He cited paragraph-16 of the decision of the Tribunal in the case of L.M. Van Moppes Diamond Tools India Limited, Madras v. Collector of Customs, Madras, [1986 (24) E.L.T. 623], and submitted that we have to first see whether the goods as imported can be classified under Heading 96.12 as typewriter or similar ribbons and it is only when we fail to do so that the question of referring to the Rules of Interpretation would arise. He submitted that the form in which the goods had been imported clearly showed that they were not ribbons and placed reliance on Explanatory Notes of the H.S.N. relating to the items excluded from Heading 96.12 which was as under :- Rolls of carbon or other copying paper strip, not suitable for use as typewriter, etc., ribbons, but designed to produce duplicate copies in accounting machines, cash registers, etc. This strip, which is usu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is the importing into or exporting from India. Condition of the article at the time of importing is a material factor for the purpose of classification as to under what head, duty will be leviable. The reason given by the authority that V.P. Latex when coagulated as solid rubber cannot be commercially used as an economic proposition, as even admitted by the appellants, is an extraneous consideration in dealing with the matter. We are, therefore, not required to consider the history and chemistry of synthetic rubber and V.P. Latex as a component of S.B.R. with regard to which extensive arguments were addressed by both sides by quoting from different texts and authorities. 12. Shri Murthy s submission was that the goods as imported are not known as typewriter ribbons. It is only after slitting them and subjecting them to further processes as detailed in the Manual submitted by the appellants that they would become typewriter ribbons. He, therefore, submitted that the goods were not classifiable under Heading 96.12 but under Heading 39.20 as decided by the lower authorities. 13. As regards the appeal against the order about import licence, Shri Murthy submitted that Collector ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of Dunlop India cited supra by the learned SDR holds that the condition of the article at the time of importation is a material factor for the purpose of determining its classification for levy of duty. This being so, we do not consider that the case law cited by the learned Counsel about the primary function and functional character of an article in the case of Atul Glass Industries cited supra and Modem Roofings Limited cited supra has any application to the facts of the present case. During the hearing, the learned Counsel also had submitted that if the appellants had imported the goods of a width suitable for typewriter ribbon, the authorities could not have allowed their imports by treating them as consumer goods. This is a clear admission of the fact that the goods as imported are not typewriter ribbons even though they may perform the function of giving impression because of a carbon coating on one side. It further appears from page 107 of the Manual (A Guide to Printing Systems and Supplies) that manufacture of film ribbon catridges involves seven steps and, so far as the subject goods are concerned, the process would start from step No. 4 which is indicated below ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erials (Heading 39.21). The heading also excludes strip or an apparent width of an apparent width not exceeding 5 mm (Chapter 54). According to Note 10 to this Chapter, the expression plates, sheets, film, foil and strip applies only to plates, sheets, film, foil and strip and to blocks of regular geometric shape, whether or not printed or otherwise surface-worked (for example, polished, embossed coloured, merely curved or corrugated), uncut or cut into rectangles (including squares) but not further worked (even if when cut, they become articles ready for use, for example tablecloths). Plates, sheets, etc., whether or not surface-worked (including squares and other rectangles cut therefrom), with ground edges, drilled, milled, hemmed, twisted, framed or otherwise worked or cut into shapes other than rectangular (including square) are generally classified as articles of Headings 39.18, 39.19 or 39.22 to 39.26. (Emphasis represents words typed in bold print in the original) 21. From the above it is clear that the plastic film which is surface-worked is included under Heading 39.20 and the examples of what is surface-worked given in the Explanatory Notes covers not only operat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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