Judgment:
1. M/s. Manipal Power Press have filed the instant appeal being aggrieved with the order No. M. CUS 1436/89, dated 11-8-1989 passed by the Collector of Customs (Appeals), Madras.
2. The appellants imported Dampening Sleeves made of plastics and the goods were assessed to customs duty under Heading 3926.90 of the First Schedule to the Customs Tariff Act, 1975 ('the Schedule' for short).
After clearance of the goods on payment of the duty so assessed, the appellant sought reassessment in terms of Customs Notification No.69/87, dated 1-3-1987 and consequential refund. The claim was rejected as inadmissible by the Assistant Collector and this order was upheld by the Collector (Appeals) whose order is now under challenge before us.
3. We have heard Shri K.V. Kunhikrishnan, Consultant, for the appellants and 1991 (56) E.L.T. 556 (Tribunal) Shri L. Narasimhamurthy, DR, for the respondent-Collector.
4. Shri Kunhikrlshnan's submission is that the subject goods are parts of printing machines and are classifiable under Heading No. 98.06 of the Schedule. His further submission is that the mischief of the proviso (iii) to Notification No. 69/87 would not be attracted in the present instance since the goods are not classifiable within Chapter 59 [for which reliance is placed on the Madhya Pradesh High Court's judgment in Raj Pack Well Ltd. v. Union of India - 1990 (50) ELT 201 (MP). On the other hand, Shri Narasimhamurthy's submission is that even according to the appellants' admission the subject goods are non-woven textile articles and if this be so the goods will be hit by the mischief of the aforesaid proviso (iii) and benefit of Notification No.69/87 would not be available.
5. We have considered the submissions of both sides. It is seen from the impugned order that the lower appellate authority has proceeded on the basis that the goods are specially designed for use in offset printing in printing machinery as a part. On this basis, he has classified the goods under Heading 98.06. We are, therefore, proceeding on the basis that the goods are specially designed parts for use in offset printing machinery though they are made of plastics. Now, in accordance with Statutory Note (1) to Chapter 98, the said Chapter is to be taken to apply to all goods which satisfy the conditions prescribed therein, even though they may be covered by a more specific heading elsewhere in the Schedule. Heading No. 98.06 reads :- "Parts of machinery, equipments, appliances, instruments, and articles of Chapters 84,85,86,89 and 90." Now, printing machinery and machines for uses of ancillary to printing are covered by Heading No. 84.33 which falls in Chapter 84. Sub-heading 8443.90 covers parts. Statutory Note (1)(e) to Section XVI (within which Chapter 84 falls) lays down that this section does not cover transmission or conveyor belts of textile material (Heading No. 59.10) or other articles of textile material for technical uses (Heading No.59.11). Heading No. 59.10 is not relevant for the present purpose and Heading No. 59.11 covers textile products and articles for technical uses, specified in Note 7 to Chapter 59. Now, it has been held by the Madhya Pradesh High Court in the Raj Pack Well case (supra) that HOPE (High Density Polyethylene) strips/tapes/sacks being goods made of plastic and not of synthetic textile materials, would be classifiable under Chapter 39 of the Central Excise Tariff Schedule. Of these, HDPE sacks are woven sacks. Even so the High Court held that they would not fall under the Chapters relating to textiles but only under the Chapter relating to plastics, namely, Chapter 39. The ratio of the judgment applies to the present goods also. Therefore, there is no cause for interfering with the original classification under Heading No. 3926.90 of the Schedule. Even so, by virtue of Statutory Note (1) to Chapter 98, the goods would be deemed, for the present purpose, to fall under Heading No. 98.06. If this be so, the question of proviso (iii) of Notification No. 69/87 excluding the present goods from the scope of the notification, does not arise.
6. Notification No. 69/87 prescribes a concessional rate of basic customs duty at 45% ad valorem and accords full exemption from the whole of the additional duty of customs on parts falling under Heading No. 98.06, of the goods specified in the table to the notification.
Heading No. 84.33 which covers printing machine figures in the table against Serial No. 13. By virtue of Statutory Note (1) to Chapter 98 and by virtue of their special design for use in offset printing machinery, the subject goods would fall under Heading No. 98.06.
Therefore, they would be eligible for the benefit of Notification No.69/87.
7. In this view of the matter, the impugned order is set aside and the appeal is allowed with consequential relief to the appellants.