Per S.L. Peeran : This is a Revenue appeal arising from the order passed by the Collector (Appeals) accepting the importer's contention that the imported item described in the Bill of Entry as "Spot Coater RSC 40 and Sheet Feeder with Tachometer and Spares" as classifiable under Chapter Heading 84.35 of the Customs Tariff Act, 1975 and not under heading 84.59 (1) of the Customs Tariff Act, 1975 as has been held by the lower authorities. The appellants had filed a refund claim for reassessment of the goods under heading 84.35. The Assistant Collector held that spot coater, parts, sheet feeder and parts are classifiable under 84.35 as claimed to the extent granted the relief to the importer. As regards the spot coater and its parts the claim for classification under heading 84.35 has held untenable as specific ancilliary machines for printing have been mentioned in CCCN 84.35 but Lacquer varnish coating machines do not figure herein. He has noted the catalogue of spot coater and observed that lacquer and varnish coating machine and its classification under heading 84.59 (1), machines and mechanical appliances, having individual functions, not falling within any other heading of this Chapter:

(1) Not elsewhere specified.

(2) is proper and hence rejected the claim in respect of this item.

2. The Collector (Appeals) upheld the importer's contention on the reasoning that the machine is for printing of Aluminium sheets and tin plates which are given base coat with the help of laquiring or varnishing machine, i.e. Spot Coater. He has held that if heading 84.35 is carefully seen, it not only covers the machines ancilliary to printing but also covers other printing machines. He has observed that at page 1286/1287 of E.N. to B.T.N. some special machines other than normal type of printing machines are listed which are also covered under heading 84.35. It shows that the heading 84.35 covers various kinds of printing machines like machine for printing tin foil boxes or other container and others. He has further observed that from the catalogue of Spot Coater, it is seen that it is a roller type printing machine used for colour/laquir coating of metal sheets. This machine and its parts would be more appropriately classifiable under heading 84.35 and not under heading 84.59 (1) of the Customs Tariff Act, 1975.

3. The Revenue is aggrieved with this reasoning. It is stated in the appeal memo that the manufacturer's catalogue shows that the machine imported model RSC/40 is nothing but 'Coater' meaning that the machine is designed to apply lacquer, varnish, enamel and other coating to various sheet materials, especially where strips or portions of the sheet need to be left bare and free of coating. Therefore, it is stated that the Collector (Appeals) failed to understand that there is a wide difference between printing machine and coating machine. The catalogue shows very clearly that the machine imported has got specific application on metal decoration only, by using other materials. It is stated that the imported machine has got separate identity by function/description as "Coater" which cannot be treated as printing machine and as such the machine is capable of functioning independently for coating the metals like sheet/strips. It is stated that CCCN (page 1286 1287) is very clear, which only relates to other types of printing machines and not for the coating machine. The machine indicated in the said pages of CCCN and all in the nature of printing machine and nowhere is indicated the machine which is under dispute. Therefore, they states that the classification adopted by the lower authorities under heading 84.59 (1) of CTA, 1975 is correct and proper that is required to be upheld by setting aside the impugned order.

4. We have heard the Learned DR, Shri K.K. Jha for the Revenue and Shri Y. Subramaniyam, the Representative of the respondents.

5. The Learned DR submitted that the imported machinery cannot be considered under Heading 84.35 w