TMI Blog2015 (7) TMI 790X X X X Extracts X X X X X X X X Extracts X X X X ..... The ingredient of a plate from which there can be reproduction is, thus, recognised as a process of printing. It would also be pertinent to mention that these very HSN Explanatory Notes clarify that apart from the normal types of printing machines, there are special printing machines which are also covered by this heading. Examples of 7 such machines are specifically given. For the purpose of this case, printing machine described at serial No.7 would be pertinent. A fine distinction between the printing machine on the one hand and duplicating machine on the other has to be borne in mind with specific understanding that in many cases there may be confusion between duplicating machine and specific form of printing machine, namely, screen printing machine. We may point out at this juncture that the endeavour of the appellant is to establish that Risograph machine is nothing but Screen Printing Machine. Risograph printing process is more akin to screen printing - The printing itself takes place when the ink is squeegeed through the stencil onto the screen and ultimately onto the paper. It is the screen which holds the image area, which can carry either a pictorial or typographic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s under: 84.72 Other office machines (for example, hectograph or stencil duplicating machines, addressing machines, automatic banknote dispensers, coin-sorting machines, coin-counting or wrapping machines, pencil-sharpening machines, perforating or stapling machines) 8472.10 - Duplicating machines 65% 8472.20 - Addressing machines and address plate 65% embossing machines 8472.30 - Machines for sorting or folding mail or for inserting mail in envelopes or bands, machines for opening, closing or sealing mail and machines for affixing or cancelling postage stamps 65% 8472.90 - Other 65% 3) As per the appellant-assessee, Risograph machine is a printing machine which should be covered by sub-heading 8443.50, namely, 'other printing machinery'. On the other hand, the respondent-Revenue has taken the position that it is a specie of duplicating machine and falls under the sub-heading 8472.90, viz. 'Other'. Though under both the sub-headings the import duty is 65%, however, insofar as printing machinery is concerned, by virtue of Notification No. 59/94-CUS dated March 01, 1994, which includes Chapter Heading 84.43, the duty is to be calculated at the rate o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eading 8443.50. The appellant categorically brought to the notice of the Assistant Commissioner the following facts for the purpose of classification: (a) Riso Kagaku Corp, the manufacturers of Risograph, were themselves clearing the machine under sub-heading 8443.50 of the classification without raising any objection; (b) test of trade parlance was in favour of the appellant wherein Risograph is commercially known and understood as a digital printing machine in India as well as abroad, as evident from the declaration of the manufacturers; (c) the mere fact that Risograph starts with an original cannot be a ground to say that it is not a printing machine when all other printing machines require an original in some form or the other, be it in the form of plates or digital images; (d) HSN Explanatory Notes clearly support the classification of the machine under Chapter Heading 84.43 wherein it specifically provides that in addition to normal type of printing machine Chapter Heading 84.43 also cover special machines such as small office printing machines which operate by means of printing type or by offset process, and which are improperly referred to as 'duplicating m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used to reproduce copies and does not have any mechanism to print any original matter. This is totally incorrect inasmuch as once the master is made then from the master, by the principle principle using ink, which flows through the pores of the paper/plastic master, fresh prints are taken out. There is no copying principle as in a photocopying machine. (h) Operation Guide itself shows how the master is first made and thereafter prints are taken out and hence the Conclusion of the Tribunal in para 9 in Pioneer International is totally incorrect and perverse. (i) In the case of offset printing, as per the Tribunal, the impression is taken on a rubber roller and then on to the paper. In other words, the master is made which is transferred to the rubber rollers, which thereafter prints on the blank paper. In the present case, the Risograph makes the master and from the master prints are obtained and hence it is nothing but a printing process. The process of making master is akin to the printing plates made in the printing industry and there is no escape from this conclusion. Moreover, the inked prints obtained as per the technical literature of the Risograph is the same as what ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in a duplicating machine, which is then loaded on to the drum. The ink which is carried in the drum pieces through the micro-pores in the master on the paper when it is fed underneath the rotating drum. It is, therefore, submitted that Risograph is nothing but a transformation of the duplicator with certain additional functions. The afore-mentioned process clearly indicates that there are no principles of offset printing or photocopying involved. It is further submitted that the principal function is that of a duplicating machine and cannot be treated as a offset printing machine. 7) He also submitted that on February 02, 1993, the Conference of Collector of Customs examined under which chapter tariff heading Risograph should be classified. The Collectors' Conference, after examining the detailed catalogue and working of Risograph, came to the conclusion that the machine is a duplicating machine and, therefore, appropriately classifiable under Heading 84.72. The Collectors' Conference also came to conclusion that Risograph is more appropriately classifiable under sub-heading 8472.10. 8) He, thus, summed up his arguments by contending that printing and photocopying wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y noted above, Chapter Heading 84.72, applies to 'Other office machines, includes duplicating machines'. HSN Explanatory Notes to Chapter Heading 84.72 explains that the term 'office machine' is to be taken in a wide general sense to include all machines used in offices, shops, factories, workshops, schools, railway stations, hotels, etc., for doing 'office work' (i.e. work concerning the writing, recording, sorting, filing, etc., of correspondence, documents, forms, records, accounts, etc.). It, thereafter, gives the description of duplicating machines, which is included in the aforesaid Heading, as under: Duplicating machines of the hectograph type (e.g. gelatin or spirit duplicators), and stencil duplicating machines which operate with waxed paper stencils previously cut by a stylus or on a typewriter. The heading includes small presses designed for use with hectographic apparatus. But it excludes small printing machines (e.g. letterpress, lithographic or offset printing machines) even if intended for office us, and duplicators using embossed plastic or metal sheets (including such machines which can also operate with stencils) (heading 84.43), and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paper sheet is interposed and backed with a special material (blanket) to distribute the pressure evenly; inking is done by hand or mechanically. (ii) Platen presses; these are much more powerful but similar in principle. The movable pressure plate (or platen), with the blanket and paper sheet is almost horizontal, and closes like a jaw against the type matter held in position by the fixed vertical bed. Normally, such presses are equipped with a roller inking arrangement, but the group also includes non-inking platen presses for dry relief printing. 14) The aforesaid explanation acknowledges that this simplest form of printing presses consists of a fixed slab (or bed) to hold the forme, clich or plate to be reproduced. The ingredient of a plate from which there can be reproduction is, thus, recognised as a process of printing. It would also be pertinent to mention that these very HSN Explanatory Notes clarify that apart from the normal types of printing machines, there are special printing machines which are also covered by this heading. Examples of 7 such machines are specifically given. For the purpose of this case, printing machine described at serial No.7 would be perti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rinted passes through the machine together with a stencil-screen band, the colour being applied through the stencil. (4) Yarn printing machines. These produce colour effects on the yarn (or sometimes on the roving before it is spun into yarn). 16) Thus, a fine distinction between the printing machine on the one hand and duplicating machine on the other has to be borne in mind with specific understanding that in many cases there may be confusion between duplicating machine and specific form of printing machine, namely, screen printing machine. We may point out at this juncture that the endeavour of the appellant is to establish that Risograph machine is nothing but Screen Printing Machine. 17) After taking note of the basic features which distinguish printing from duplicating, let us understand the process adopted in Risograph machine. 18) Risograph machine consists of an automatic digital scanner, a thermal head and a printing station. The prints of tex/images which can be taken from these Risographs can be suitably enlarged or reduced as per the user. The scanner portion of the Risograph consists of a photo sensor comprising of light emitting diodes and photo detector ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he screen which holds the image area, which can carry either a pictorial or typographic material. Similarly, in the case of a Risograph, the long fibre Japanese type paper is the master through which the ink is pressed to reproduce the image or text. The screen printing stencil prepared is equivalent to the plastic film coating on the cellulose fibre of Risograph master. Thus, the principles adopted for printing in the Risograph is akin to that found in screen printing. 20) At this stage, let us embark on a brief journey of printing from Gutenberg to date to see how it has evolved over a period of time leading to screen printing which is one of the most sophisticated form of printing. 21) Printing, today, has become one of the most important means of mass communication though with the advent of computers and e-form of communication, in recent years its importance is somewhat dented. Fact remains that even today it remains an important means of mass communication along with Radio, Television and Films. In or around the year 1440, Johannes Gutenberg invented and developed the printing press. It was 'printing with movable type'. Gutenberg made separate pieces of metal ty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nted out. Or the screen can be given a light-sensitive coating and the design put on it photographically. Screen process can be used to print on paper, glass, cloth, wood, or almost any other material. It is used to print on objects of almost all sizes and shapes, including draperies, banners, bottles, toys, and furniture. Most screen process printing is done on automatic or hand-operated presses. Screen process is also called silk-screen printing. 25) It is difficult to equate Risograph machine with duplicating machine. Duplicating, as opposed to photocopying, requires the preparation of a master sheet which makes duplicates on a machine. There are two main types of duplicating: stencil duplicating and spirit or hectographic duplicating. Stencil duplicating is a technique which uses a master sheet on to which lettering is impressed as lines of perforations through which ink can be squeezed on to the copy paper. Spirit duplicating (also known as hectographic duplicating) is a process/method which uses strong aniline dye. Originally the ink was transferred to a sheet of gelatin by placing the sheet of paper with the dye on it in a shallow tray. The moisture retaining qualities of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... self; that all the facilities available in printing are available in Risograph such as registering errors, adjustment of margin on four sides of paper, margin for binding and fine tuning of the print. It was also argued that the process of scanning and master making are ancillary to printing and are inbuilt in the machines; that simply because certain processes are separately done in offset printing does not mean that where these processes are inbuilt the same is precluded from the term 'printing machinery'. However, the aforesaid arguments were not accepted and plea of the Department was acceded to with the solitary observation that the Risograph machine is used only to reproduce copies from the originals and it does not have any mechanism to print in original matter. This observation, according to us, is contrary to plethora of material produced, coupled with the HSN Explanatory Notes, as noticed above, which clinch the issue in favour of the assessee herein. We are, therefore, of the opinion that Pioneer International does not lay down the law correctly and over-rule the said judgment. 27) The outcome of the aforesaid discussion would be to allow the appeal holding ..... X X X X Extracts X X X X X X X X Extracts X X X X
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