2024(10)LCX0131(AAR)

Lokesh Agarwal

decided on 21-10-2024

CUSTOMS AUTHORITY FOR ADVANCE RULINGS
NEW CUSTOM HOUSE, BALLARD ESTATE, MUMBAI - 400 001
 E-MAIL: cus-advrulings.mum@gov.in

The 21st of October, 2024
Ruling Nos. CAAR/Mum/ARC/159/2024
in
Application No. CAAR/CUS/APPL/44/2024 - O/o Commr-CAAR-MUMBAI

Ruling

    M/s. Lokesh Agarwal (hereinafter referred to as 'the applicant') filed an application for advance ruling before the Customs Authority for Advance Rulings, Mumbai (CAAR. in short). The said application was received in the secretariat of the CAAR, Mumbai on 08.05.2024, along with its enclosures in terms of Section 28H (1) of the Customs Act, 1962 (hereinafter referred to as the "Act'). The applicant is seeking advance ruling on the classification of 'Digital Duplicator" under CTH 84729020 & its spares parts, consumables (such as ink Cartidges, master rolls), under CTH 84734090 proposed to be imported.

2. The applicant is a proprietorship firm. The applicant is intending to import "Digital Duplicator" & its spares parts, consumables (such as ink Cartidges, master rolls), (hereinafter referred to as the 'subject goods'). The applicant submitted that the subject goods are Digital Duplicator of CTH 8472 and not mere a "Printing Machinery Used For Printing By Means Of Plates, Cylinders And Other Printing Components Of Heading 8442; Other Printers, Copying Machines And Facsimile Machines. Whether Or Not advance Combined; Parts And Accessories Thereof Printing Machinery Used For making them classifiable at CTH 8443.

    Impugned Digital Duplicator is a stencil duplicator. It produces a stencil for each page that is printed. It  has a thermal head that burns holes/dots into the stencil one line at a time. After the stencil produced, it is wrapped around a porous screen drum. Ink is deposited on the inside of the drum and spread by a roller. The ink is forced through the drum and stencil to produce a copy on the paper. Digital duplicators are designed for economical short run printing. Since a stencil must be created for each page printed it is usually not economical to. print job of less than 30 copies. In this respect, digital duplicators are not designed for the type of data output associated with ADP units/printers. This machine is designed for churches, government offices, "print-for- pay" businesses, and commercial in-plant printers.

    The DigitaI Duplicator produces black and white copies at 300 x 400 dots per inch (dpi). With optional replacement color drums., it can use monochrome colors. However, it is not designed to produce true color printing. The Digital Duplicator has a built in scanner too. Options for the Digital Duplicator include a controller interface for connecting to a Windows PC or Macintosh desktop environment. This machine has a high copy speed and makes copies at the rate of 120 pages per minute. It has an automatic paper feeder and a total paper capacity of 1,000 sheets. It utilizes various paper sizes with a maximum size of 297 x 420 mm.

2.1 The applicant further submitted that the subject goods. Digital Duplicator is a stencil duplicator. It produces a stencil for each page that is printed. It has a thermal head that burns holes/dots into the stencil one line at a time. After the stencil is produced, it is wrapped around a porous screen drum. Ink is deposited on the inside of the drum and spread by a roller. The ink is forced through the drum and stencil to produce a copy on the paper. Digital duplicators are designed for economical short run printing. Since a stencil must be created for each page printed it is usually not economical to print jobs of less than 30 copies. In this respect, digital duplicators are not designed for the type of data output associated with ADP units/printers. This machine is designed for churches, government offices, "print-for-pay" businesses, and commercial in-plant printers.

    The Digital Duplicator produces black and white copies at 300 x 400 dots per inch (dpi). With optional replacement color drums, it can use monochrome colors. However, it' Is not designed to produce true color printing. The Digital Duplicator has a built in scanner too, Options for the Digital Duplicator include a controller Interface for connecting to a Windows PC or Macintosh desktop environment. This machine has a high copy speed and makes copies at the rate of 120 pages per minute. It has an automatic paper feeder and a total paper capacity of 1000 sheets. It utilizes various paper sizes with a maximum size of 297 x 420 mm. They further relied on Customs Ruling NY h83612 The tariff classification of Digital Duplicators from Japan, (customsmobile.com) which states that the applicable subheading for the Digital Duplicator, will be 8472.10.0000,Harmonized Tariff Schedule of the United Slates (HTS), which provides  for "other office machines (for example, hectograph or stencil duplicating machines."

    The applicant further clarified that The digital duplicator BPS 150 establishes a connection with a computer by USB line. Once connected, users can select documents from their computer device and make master by sending commands directly to the duplicator. The duplicator receives the data in real time, allowing for immediate processing and making a master and output the print copies after 19 seconds

    The digital duplicator BPS 150 has an inbuilt scanner ONLY FOR MAKING MASTER. Users can select the master making through scanning and put the original to the scanner, it's started scanning the original and sending commands to the duplicator which receives the data in real time, allowing for immediate processing and making a master and output the print copies after 19 seconds.

    The connection with a computer, enables digital duplicator only to receive the data for making a master which takes 19s to complete the process (after receiving data from computer), thereafter user can print the job by input the required number of copies in digital duplicator:

    Users cannot input number of copies from computer during procedure of master making through computer, because if a user given 200 nos, print command for a particular page to the digital duplicator, the machine will make master 200 times and each master will take 191. so the user needs to give only a single command for making master and after completion of making master process he should have to input the nos of copies in digital duplicator to print required numbers of copies.

    Master/stencil is a thermoplastic resin film bonded to a carrier that is permeable to ink. It operates using a thermal head that penetrates Master/stencil. The original image, read by an optical sensor, is transmitted as a digital signal to the thermal head. The thermal head melts the thermoplastic resin film to penetrate it, allowing the ink to seep through the porous carrier via holes created by perforations. This type of thermal master paper has high perforation sensitivity, produces clear printed images, and has a long printing lifespan.

2.3 The applicant has made reference to refer Customs Ruling NY h83612 - The tariff classification of Digital Duplicators from (customsmobile.com) Japan. Which states that the applicable subheading for the Digital Duplicator, will be 8472.10.0000, Harmonized Tariff Schedule of the United States (HTS), which provides for "other office machines (for example, hectograph or stencil duplicating machines...duplicating machines." Further GRI-Customs Rule 3 (b) & ( c) also supports classification of the said goods at CTH 8472. Also the spares parts, consumables (such as ink cartridges, master rolls) used in Digital Duplicator should be classified under CTH 84734090.

3. The applicant intends to import the said goods through NS-V, JNCH, Nhava Sheva, Maharashtra as stated by the applicant at Sr. No. 13 of the CAAR-I form (Application form for advance rulings). Accordingly, comments from the jurisdictional Commissioner of Customs. NS-V. JNCH were invited vide this office letter dated 15.05.2024. The comments received from the Commissioner of Customs, NS-V, JNCH are as following:

3.1 The question of the applicant is related to "(a) classification of goods under the Customs Tariff Act, 1975 (31 of 1975)" thus the nature of activity as being proposed by the applicant is covered under section 28H (2) (a) of the Customs Act, 1962.

3.2 As per available records it appears that there are no issue pertaining to classification of digital duplicator is pending in that commissionerate.

3.3 As per applicants' submission, they are engaged in importation of digital duplicator and are importing  and distributing BLUE brand Digital Duplicator & its spare parts, consumables (ink cartridges & mater rolls) from China. The applicants have a proper understanding as to whether the digital duplicators are classifiable under 84729020 and is spares, parts under CTH 84734090.

3.4. Ongoing through the submission and catalogue of the applicant, it is noticed that the applicant has been importing digital duplicator and they have sought advance ruling as to  whether the digital duplicators are classifiable under 84729020 and its spares, parts under CTH 84714090.

3.5. The definition of digital duplicator as obtained from vvikipedia is as below

    A digital duplicator, also known as a printer-duplicator, is a printing technology designed for high volume, repetitive prom jobs (100 copies or more) Digital duplicators can provide a reliable and cost efficient alternative to toner based copier or off-set printing equipment. The digital duplicator begins by digitally scanning the original and then transferring it to master through thermal imaging process. Then the master is automatically wrapped around a print cylinder,where the ink is drawn through the perforations in the master creating the print.

3.6 The digital duplicators are exclusively classified under CTH 84729020 as per Custom Tariff Ac 1975. Furhter, the relevant portion of the explanatory notes under Tariff head 8472 is reproduced as below:


    84.72 - Other office machines (for example, hectograph or stencil duplicating machines, addressing machines, automatic banknote dispensers, coin-sorting machines, coin-counting or vrapping machines, pencil-sharpening machines, perforating or stapling machines.

    8472.10 - Duplicating machines

    8472.30 - -Machines for sorting or folding mail or for inserting mail in envelopes of bands machines for opening, closing or scaling mail and machines for affixing or cancelling postage stamps.

    8472.90 - Other

    This heading covers all office machines not covered by the preceding two headings or more specifically by any other heading of the Nomenclature.

    The term "office machines" in 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 (ie, work concerning the writing, recording, sorting, filing, etc of correspondence, documents, forms, records, accounts, etc.)

    Office machines are classified here only if they have a base for fixing or for fixing or for placing on a table desk, etc. The heading does not cover the hand tools, not having such a base of Chapter 82.

    The machine of this heading may be hand operated, mechanically operated or electrically operated (including electro-magnetic relay or electronic operated machines).

    The heading includes inter alia:

    (1) 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 use, and duplicators using embossed plastic or metal sheets (including such machines which can also operate with stencils), and photocopying or thermocopying apparatus (heading 84.43), and microfilm apparatus (Chapter 90).

3.7. From the above it can be inferred that this heading includes other office machines which can be used in offices, shops, factories, workshops, schools etc. but only for doing "office work" and further they are classified here only if they have a base for fixing or for placing on a table, desk etc. Further it is also mentioned that if a duplicator can use embossed plastic or metal sheets (including such machines which can also operate with stencils) for printing then these are not classifiable under heading 847290.

3.8.- As per the catalogue and details submitted by the importer their product is a stencil duplicator, it produces a stencil for each print job and then the ink get printed on the printing material ie paper through the holes and spaces of the stencil in the desired design. However it is not clear from the catalogues whether these printers can use embossed plastic or metal sheets for printing or not. Also the importer hasn't clarified about the end use of the said item that whether it will be used commercially or only for office use.

3.9. As far as the classification of the parts is concerned the chapter note 2 of chapter 84 states that:

'Subject to Note 1 to this Section. Note 1 to Chapter 84 and to Note I to Chapter 83, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) arc to be classified according to the following rules:

(a) parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings:

(b) other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431. 8445, 8466, 8473, 8503, 8522, 8529 or 8338 as appropriate."

3.10. An item  will be considered as a part of a machine only if it is solely and principally to be used with the specific model of that machine (in this case, digital duplicator) unless the parts have themselves a heading under chapter 84 or 85. If the parts imported are goods included in any of the beadings of chapter 84 or 85 then the same will be classified in that heading only.

3.11. Based on above discussions it could be concluded that although the digital duplicators, this heading covers such duplicators which are meant specifically for office use only. However, the tariff head 8472 excludes the duplicators using embossed plastic or metal sheet and the same will be classifiable under tariff heading 8443 according to their characteristics. Further, in this case its parts will also be classified under heading 8443 not under 8473 unless they have any specific heading under Chapter 84 or 85.

3.12. In view of the above the possible scenarios of the classification of the digital duplicator has been explained above, the same may be taken into kind consideration during the proceedings i.e.the request of the applicant should not be accepted if the subject duplicator is  to be used for other than office works and is capable of using embossed plastic or metal sheets for printing as discussed in above paras. Further, the parts will not be classified in CTH 84734090 as claimed by applicant if these are the parts of duplicator for use other than office works and/or using embossed plastic or metal sheet or if the parts imported are classified as specific heading under Customs Tariff Chapter 84 or 85.

4.The application was listed for hearing on 16.07.2024. The applicant was represented by Shri Satish Acharya, Consultant/Representative and Shri Lokesh Agarwal, Proprietor. They  reiterated the contention made in the application that the subject import goods i.e office Digital Duplicator, merit classification under CTH 84729020 and the parts thereof under 84734090. They rebutted the written reply received from the jurisdictional commissionerate. No one jurisdictional Commissioner of Customs in the hearing.

5. I have considered all the materials placed before me in respect of the subject goods for which an advance ruling has been sought. I have gone through the written submissions as well as the points made during personal hearing. Now, I proceed to pronounce ruling on the issue on the basis of information available on record. The goods are claimed to be "Digital Duplicator" & its spares parts, consumables (such as ink Cartidges, master rolls) for which classification is to be decided.

5.1 The classification of goods under the Customs Tariff decided by details of Section Notes, Chapter Notes, Sub-Heading Notes, Supplementary Notes, Headings, Sub-headings. HSN explanatory notes and the General Rules for Interpretation (hereinafter referred to as the "GRl") of the Customs Tariff. Functional utility, designs, shapes and commercial parlance in the trade and it industries is also given due weightage to arrive in the correct classification.

5.3 Classification of goods in the Nomenclature shall be governed by the following principles :

    1. The titles of Sections, Chapters and sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the following provisions :

    2. (a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this Rule), presented unassembled or disassembled.

    (b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles
of Rule 3.

    3. When by application of Rule 2 (b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows :

    (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings arc to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.

    (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3 (a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.

    (c) When goods cannot be classified by reference to 3 (a) or 3 (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.

    The GRI is applied sequentially to arrive at a proper classification of the import goods.

5.5 Classification of goods is decided in accordance with GRI 1 i.e through the primacy of terms of headings and Section Notes and Chapter notes. When the nature and description of goods match the terms of headings in a chapter and further the goods fall within the scope of Section notes and Chapter Notes of the Customs Tariff such goods are classifiable as per Rule1 of GRI.

5.6 Thus, it becomes necessary to refer to relevant Section notes, Chapter notes and Heading notes to decide the classification of the subject goods under consideration.

5.7 The Customs Tariff is aligned up to the 6 digit level with the Harmonized System of Nomenclature (HSN) issued by the World Customs Organization (WCO) For uniform interpretation of the HSN, the WCO has published detailed Explanatory Notes to the HSN which have Iong been recognised as a safe guide to interpret the Schedules to the Customs Tariff

5.8 The case of CC vs. Wood Craft Products Ltd., (1995) 77 ELT 23 (S.C.) the Hon'ble Supreme Court of India held that in case of doubt, HSN is a safe guide for ascertaining true meaning of any expression used in the Act. unless there is an express different intention Indicated in the Customs Tariff itself. The same view has been taken by the Hon'ble Supreme Court in the case of CC v. Business Forms Ltd.. 2002 (142) E.L.T. 18 (S.C.)

5.9 Therefore to further interpret the relevant Headings, Sub-Headings and Section Notes under the First Schedule of the Customs Tariff, reliance can also be placed on the Explanatory Notes to the HSN.

6. It is clear that the subject goods covered under chapter 84 as there are specific headings related to printing machines and duplicating machines.

6.1 The heading 8472 is "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 00-Duplicating machines

    8472 30 00-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

    847290-Other

    8472 90 10—Stapling machines (staplers)

    8472 90 20—Digital duplicator


6.1.1 The explanatory notes for heading 8472 is as following:

    This heading covers all office machines not covered by the preceding two headings or more specifically by any other heading of the Nomenclature.

    The term "office machines" 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.).

    Office machines are classified here only if they have a base for fixing or for placing on a table, desk, etc. The heading does not cover the hand tools, not having such a base, of Chapter 82.

    The machines of this heading may be hand-operated, mechanically operated or electrically operated (including electro-magnetic relay or electronic operated machines).

    The heading includes, inter alia :

    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 use, and duplicators using embossed plastic or metal sheets (including such machines which can also operate with stencils), and photocopying or thermocopying apparatus (heading 84.43), and microfilm apparatus (Chapter 90).

6.2 The heading 8443 is printing machinery used for printing by means of plates, cylinders and other printing components of heading 8442; other printers, copying machines and facsimile machines, whether or not combined; parts and accessories thereof

        -Printing machinery used for printing by means of plates, cylinders and other printing components of heading 8442:

8443 11 00~Off set printing machinery, reel fed

8443 12 00—Offset printing machinery, sheet-fed, office type (using sheets with one side not exceeding 22 cm and the other side not exceeding 36 cm in the unfolded stale)

8443 13 00-Other offset printing machinery

8443 14 00-Letterpress printing machinery, reel fed, excluding flexography printing

8443 15 00—Letterpress printing machinery, other than reel fed, excluding flexographic printing

8443 16 00—Flcxographic printing machinery

8443 17 00—Gravure printing machinery

8443 19-Other:

8443 19 10—Flat bed printing presses

8443 19 20—Platen printing presses

8443 19 30—Proof presses

— Machinery for printing repetitive word or design or colour:

8443 19 41—-On cotton textile

8443 19 49—Other

8443 19 90—Other

    -Other printers, copying machines and facsimile machines, whether or not combined:

8443 31 00-Machines which perform two or more of the functions of printing, copying or facsimile transmission, capable of connecting to an automatic data processing machine or to  network:


8443 32 --Other, capable of connecting to an automatic data processing machine or to a network:

8443 32 10—Line printer

8443 32 20—Dot matrix printer

8443 32 30—Letter quality daisy wheel printer

8443 32 40—Laser Jet printer

8443 32 50—Ink jet printer

8443 32 60—Facsimile machine

8443 32 90—Other

8443 39-Other:

8443 39 10—Ink-jet printing machine

8443 39 20— Electrostatic photocopying apparatus operated by reproducing the original image copy directly onto the (direct process)

8443 39 30—Electrostatic photocopying apparatus operated by reproducing the original image via and intermediate onto the copy (indirect process)

8443 39 40—Other photocopying apparatus incorporating an optical system

8443 39 50—Other photocopying apparatus of contact type

8443 39 60—Thermo-copying apparatus

8443 39 70—Facsimile machine not capable of getting connected to automatic data processing machine

8443 39 90—Other

        -Parts and accessories:

8443 91 00- Parts and accessories of printing machinery used for printing by means of plates, cylinders and other printing components of heading 8442

8443 99-Other:

8443 99 10—Automatic documents feeders of copying machines

8443 99 20—Paper feeders of copying machines

8443 99 30—Sorters of copying machines

8443 99 40—Other parts of copying machines

— Parts and accessories of goods of sub-headings 8443 31, 8443 32:

8443 99 51 — Ink cartridges, with print head assembly

8443 99 52-— Ink cartridges, without print head assembly

8443 99 53—Ink spray nozzle

8443 9959—-Other

8443 99 60— Parts and accessories of goods of sub-heading 8443 39

8443 99 90—Other

6.2.1 The explanatory notes of 8443 are as following

    (I) PRINTING MACHINERY USED FOR PRINTING BY MEANS OF PLATES, CYLINDERS AND OTHER PRINTING COMPONENTS OF HEADING 84.42

    The most common of these machines are rotary presses. In their simplest form, these presses usually  consist of a cylinder with two semi-cylindrical plates (letter press), or of cylinders which may be either engraved (gravure printing) or impressed (offset printing); rotary presses for cololur- printing are equipped with several printing cylinders, their inking rollers being placed side by side. Since all the printing, pressing and inking mechanisms are rotary, these presses can be used for both continuous printing and sheet by sheet printing, in black or in colour, on single sides or on both sides of the paper. Rotary presses can be divided into two sub-categories:

(1) Reel-fed presses,  in which some large rotary presses combine several printing units on a single frame and which enable all the pages of a newspaper or periodical to be printed in one sequence of operations, so that, in the final result, all the pages are delivered, cut, folded, assembled, stapled and stacked by various ancillary machines working in conjunction with the printing machine.

(2) Sheet-fed presses, in which the sheets are transported through the printing units by grippers. Sheet-fed presses have a feeder, one or more printing units, and a delivery mechanism. In the feeder the sheets are taken from a pile, aligned, and forwarded to the printing unit. In the delivery mechanism the printed sheets are collected in a pile.
This group also includes printing presses using a movable plate (or platen), and cylinder printing machines.

    The above printing presses (particularly the small or medium-sized rotary presses) can be fitted with a series of making-up units arranged side by side with the printing units, so that, starting from a single reel of paper, complex products (e.g., box shapes, packagings, labels, railway tickets) can be completed in one single and continuous operation.
In addition to the typical types of printing machines, this heading also covers special machines such as:

(i) Machines for printing tin foil boxes or other containers.

(ii) Machines for printing clock or watch dials or other articles of special shapes.

(iii) Machines "or printing on corks, tubes, candles, etc.

(iv) Machines "or marking clothing.

(v) Machines f )r printing book page signatures.

(vi) Numbering, dating, etc., machines (other than hand-operated date and similar stamps of heading 96.111 operating with irons, bands of letters or figures, etc., whether or not inked.

(vii) Certain small office printing machines which operate by means of printing type or by the offset process, and which are improperly referred to as "duplicating machines' because their operating principles and appearance are similar to those of duplicating machines.

6.3 The explanatory notes in respect to parts and accessories of heading 8443 are as following

PARTS AND ACCESSORIES

    Subject to the general provisions regarding_ the classification of parts (As per the General explanatory Note to Section XVI), the heading also covers parts and accessories of the machines of this heading.

    This would include, for example, machines (whether or not presented separately) for uses ancillary to printing exclusively designed to operate with printing machines and used during or after the printing operation for feeding, handling or further working the sheets or rolls of paper. Such machines, which are usually separate from the printing machine itself, include

(1) Stock or pile elevators and paper trays or drawers, which hold the blank sheets ready to be printed.
(2) Automatic feeders, used for sheet by sheet printing. Their function is to feed sheets one by one, perfectly centred, into the machine.
(3) Sheet delivery mechanisms, similar in design to feeders, but carrying out the reverse process (i.e., they deliver and pile the printed sheets).
(4) Sorters, which stack and collate printed sheets of multi-page documents.
(5) Folders, gummers, perforators and staplers. These are often used, at the deliver; end of the printing machine, to fold and staple or stitch printed pages (of newspapers, folders, periodicals, etc.).
u: however, they are not designed exclusively for use in conjunction with a printing machine, they are excluded (heading 84.40 or 84.41, as the case may be).
(6) Serial numbering machines, small accessory machines operating with rolls of figures.
(7) Bronzing machine for the printing industry. These deposit metal powder on the sheets as they emerge from the printing machine in which they have just been mordant printed.

This heading also includes drums and plates used in electrostatic photocopying apparatus, guide rollers and mounted oil supply pads.

The heading also excludes :
(a) Cylinder blankets and covers of textile fabric, rubberised textile fabric, felt, rubber, etc.
(classified
according lo the constituent material).
(b) Machinery for labelling bottles, cans, boxes, bags or other containers, and wrapping machinery
(heading 84.22).
(c) Machines with an ancillary printing device, e.g., certain bag filling or packing machines (heading 84.22); certain machines for making up paper or paperboard (heading 84.41). If presented separately, the printing device remains classified in this heading provided it prints by one of the processes of the machines of this heading.
(d) Anti-smudging spraying machines (heading 84.24).
(e) Hectographic and stencil duplicating machines, and addressing machines (heading 84.72). (0 Pattern generating apparatus (heading 84.86).
(g) Cameras for recording documents on microfilm, microfiche or other microforms (heading
90.06).
(h) Ordinary photographic printing frames (heading 90.10)
(ij) Drawing instruments of heading 90.17.
(k) Hand-operated label embossers of heading 96.11.

6.3.1 Relevant part of General explanatory Note to Section XVI are as following:

Note 2 - Subject to Note 1 to this Section, Note 1 to Chapter 84 and Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 84.84, 8'iA4, 85 AS, 85,46 or 85 A7) are to be classified according to the following rules :

(a) Parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 84.09,84.31. 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48) are in all cases to be classified in their respective headings;

(b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the sane heading (including a machine of heading 84.79 or 85.43) are to be classified with the machines of that kind or in heading 84.09, 84.31. 84.48, 84.66, .22, 85.29 or 85.38 as appropriate. However, parts which arc equally suitable for use principally with the goods of headings 85.17 and 85.25 to 85.28 are to be classified in heading 85.17 and parts which are suitable for use solely or principally with the goods of heading 85.24 are to be classified in heading 85.29;

(c) All other parts are to be classified in heading 84.09, 84.31, 84.48, 84.66, 84.73, 85.03, 85.22, ; appropriate or, failing that, in heading 84.87 or 85.48.

7. It is pertinent here to take reference of the case law HCL limited Vs. Commissioner of Customs, Now Delhi, 2015(322) ELT 129(SC) dated 21.07.2015 by division bench of the Honb'le Supreme Court. In this case the issue involved was the classification of the machines known as Risograph, which were imported by the appellant M/s. HCL Limited. The question is as to whether Risograph is an office machine having duplicating function and thus to be classified under sub-heading 8472.90 of the Customs Tariff Act, 1975 or is it a printing machine to fall under sub-heading 8443.50.

7.1 The relevant paras of the said judgement are as following:

10. 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, 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 photocopying or thermocopying apparatus and microfilm apparatus (Chapter 90). "

11. The HSN Explanatory Notes makes it amply clear that small printing machines, even if intended for office use and even duplicators using embossed plastic or metal sheet, which can also operate with stencils, and photocopying, etc. are specifically excluded. What follows from the above is that if there is a small printing machine like letterpress, lithographic or offset printing machine, which does the printing work and also, at the same lime, performs duplicating work with stencils or otherwise and even photocopying work, it would still be treated as a printing machine and not duplicating machine.

12. This would lead us to the description of 'printing machinery' as given in HSN Explanatory Notes to Chapter Heading 84.43. It is stated therein that this heading covers all machines used for printing by means of the type, printing books, plates or cylinders of the previous heading and excludes the following:

"(a) Office hectograph or stencil duplicating machines, addressing machines and other office machines of Headings 84.69 to 84.72. (b) Photocopying or thermocopying apparatus (e.g. for the production of blue prints, plans, etc., or for the reproduction of documents, picture postcards, etc.) (Chapter 90). "

        HSN Explanatory Notes further clarifies that this Heading includes the following :

"(1) Machines for printing a repetitive design, repetitive wordings or overall colour on textiles, wallpaper, wrapping paper, rubber, plastics sheeting, linoleum, leather, etc.

(2) Ancillary machinery (whether or not presented separately) such as feeders and folding machines, provided they are specially designed as ancillary machines to printing machines. "

13. Thereafter, description of 'printing machinery' is given by dividing it into three main categories, namely, (i) printing presses, (ii) cylinder printing machines, and (Hi) Rotary presses. Insofar as printing presses are concerned, the variety (hereof is stated in the following manner :

"(i) Ordinary presses, used particularly for printing artists' engravings or proofs. In their simplest form they usually consist of a fixed horizontal slab (or bed) to hold the forme, cliche or plate to be reproduced, and a movable plate which is pressed against the bed by means of a screw or lever mechanism; the 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 forms, cliche 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 pertinent.

        Therefore, we reproduce the said description hereunder:

"(vii) Certain small officeprinting machines which operate by means of printing type or by the  offset process, and which are improperly referred to as "duplicating machines " because their operating principles and appearance are similar to those of duplicating machines.

    This group also includes colour printing machines, used to colour, after they have been first printed in black and white, special art editions, playing cards, children's illustrations, etc.,by means of stencils or stencil-plates, the colour being applied by brushes, rollers or by spraying".

15. What is significant is the recognition of the fact that there are many special machines (obviously due to advancement of technology) which are small office printing machines and they operate by means of printing type or by the offset process. It is also acknowledged that many times these machines are confused with duplicating machines and improperly referred to as such, primarily because of their appearance as duplicating machines and similar operating principles. Nevertheless, as per this Note these are not to be treated as duplicating machines, but printing machines. Underneath the aforesaid special printing machines it is further mentioned that there may be machines for printing a repetitive design, repetitive words, etc. which would still qualify' to be printing machines. Example of four such machines are given in this inclusive description and screen printing machines are specifically included therein. The aforesaid aspects are demonstrated in the following specific words :

"Machines for printing a repetitive design, repetitive words or overall colour on textiles, wallpaper, wrapping paper, linoleum, leather, etc., include :

(I) Block printing machines in which blocks engraved with the design, generally in relief are repeatedly pressed on the cloth, wallpaper, etc., as it passes through the machine, thus producing a continuous design; the same machines are also used for printing separate designs (e.g. on scarves, or handkerchiefs).

(2) Roller Printing machines, usually consisting of a large central cylinder (pressure bowl) around the periphery of which is placed a series of engraved colour rollers, each with its colour trough, furnisher roller, doctor blades, etc.

(3) Screen printing machines. The material to be printed 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 detectors. The light emitted from these diodes strike the original. The light falling on the dark areas of the original are absorbed. The photo detector then detects the reflected light and reads the white and black area of the original as read by image scanner. The image thus formed by the scanner is a digital image and not an optical image or continuous image. From the scanner, image signals are transferred to thermal head. The thermal head is used to make master necessary for printing, based on the signals received from the image scanner. The thermal head carrying the signal received from the scanner touches the plastic film portion of the master. Since the film is heat sensitive, the plastic film melts while the base paper remains unaffected, thus, forming the image of the original documents on the base paper. This constitutes the master used for subsequent printing. The master material consists of film based on polyester plastic material boded with long fibre Japanese type paper (through which ink can penetrate). The master film is a few microns ir. thickness and is, thus, thin. The polyester based material is bonded to the long fibre Japanese type paper by co-polymerization. The plastic film used is heat sensitive. The paper is basically cellulose web through which ink can penetrate. The master material is in the form of a roll of paper. The paper is drawn from the roll and thermal head prepares the master. The prepared head is cut from the master and wound on the drum. The surface of the drum is a fine mesh of steel wire so as to allow ink to pass through the drum as well as the master while printing. A squeegee roller is fitted against the drum. Ink gets filled between the squeegee roller and steel mesh of the drum. During printing the squeegee roller rotates thereby forcing the ink to pass through first, the drum surface, then to the master and then on to the paper to be printed.

19. From the aforesaid description of the process adopted in Risograph machine, it becomes apparent that Risograph printing process is more akin to screen printing. As already pointed out above, the screen printing process requires a stencil and a screen, with the stencil carrying the design to be printed. This stencil is mounted against the screen. 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 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 dale to see how it has evolved over a period of time leading to screen printing which is one of the most  sophisticated from 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 type for each character to be printed. With movable type, a printer could quickly make many identical copies of a book. Using this process, the same pieces of type could be used over and over again - to print many different books. Over a period of time, there has been improvement in the methodology of printing with the advancement of technology.

22. However, there are certain steps which are common to all printing processes. These steps include : i) typesetting, (ii) proofing, (iii) preparing illustrations for reproduction, and (iv) page makeup. Typesetting is the process of putting into type the words to be printed. It is also called composition. Typesetting can be classified as (1) hot-metal typesetting or (2) photocomposition. Hot-metal type printing is now done mostly by machine, which was earlier done by hand. There are two main kind of machines (hat set metal type - the line caster and the monotype.

23. Photocomposition (which is also called photolypesetting) on the other hand includes all type setting methods that do not set metal type. Phototypeselting machines produce images of type characters on photosensitive film or paper. It is this method which is now widely used and has replaced hot-metal composition for most printing. Most commercial printing today is done by one of the three processes : (I) relief printing, (2) offset lithography, or (3) gravure printing Each of these processes uses a different kind of image carrier (the printing surface that carries the images to be printed). In relief printing, the printing surface is raised above the level of the non-printing surface. In offset lithography, the printing surface and the non-printing surface are on the same level. In gravure printing, the printing surface is below the non- printing surface.

24. In addition to the aforesaid three kinds of processes, many other printing processes have also been developed. Notable among those are : (a) screen process printing, (b) collotype printing and (c) flexographic printing.

(a). Screen process printing requires a stencil and a fine cloth or wire screen. The stencil carries the design to be printed. It can be made simply by cutting the design out of paper. The stencil is mounted against the screen. Ink is squeezed through the stencil onto the surface to be printed. The design can also be traced directly on the screen, and the non-printing parts printed out. On the screen can be given a light-sensitive coating and the design put on it photographically. Screen process can he 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 gelatin kept the ink moist, and the copy was made by pressing an ordinary sheet of paper on to the gelatin. The modern process, which has replaced the aforesaid original version, was developed in the year 1923. In this process, the master is in two parts, the lower one like a sheet of carbon paper with the dye on the top side; the dye is trans/erred to the back of the top sheet when it is typed or written upon. This sheet is then clipped to a revolving drum, and the sheets to be printed are moistened with a volatile fluid which dissolves a thin layer of dye on the master, thus transferring it to the clean paper. In a duplicating machine, as provided for in the Customs Tariff Act, the stencil itself is made using a typewriter or stylus, i.e., the stencil is created outside of the machine before the same is fed and ink directly passed through it. 'The HSN Explanatory Notes to Customs Tariff Heading 84.72 itself confirms this understanding wherein it is stated that duplicating machines include the stencil duplicating machines which operate with waxed paper stencils previously cut by a stylus or on a typewriter.

27. The outcome of the aforesaid discussion would he to allow the appeal holding that the Risograph machine is in the nature of a screen printing machine and not duplicating machine. It would, therefore, he covered under sub-heading 84.43 and not 84.7.2.

7.2. Now. As discussed above in para the classification of the subject goods has to be done in accordance with the General Rules of Interpretation (GRIs). GRI is a set of 6 rules that aid in the classification of the goods under Customs Tariff. It is a settled law that the GRI must be applied sequentially to arrive at a proper classification of the imported goods.

7.3 GRI 1 of the GRI stipulates that the goods under consideration should be classified in accordance with the terms of the Headings and any relevant Section or Chapter Notes, and if the goods are not classifiable as per the description provided, subsequent rules are to be looked into. Further, the Section Notes or Chapter Notes and Sub-Heading Notes give detailed explanation as to the scope and ambit of the respective Sections and Chapters.

7.4 The relevant part of HSN explanatory notes corresponding to the heading 8472 says that the term "office machines" 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.). The machine of this heading may be hand operated,mechanically operated or electrically operated (including electro-magnetic relay or electronic operated machines).

        The heading includes inter alia:

    (1) 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 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 use. and duplicators using embossed plastic or metal sheets (including such machines which can also operate with stencils), and photocopying or thermocopying apparatus (heading 84.43), and microfilm apparatus (Chapter 90).

7.5 Thus, this heading covers the duplicating machines which includes stencil duplicating machines stencil  duplicating machines which operate with waxed paper stencils previously cut by a stylus or on a typewriter but excludes small printing machines (offset printing machines) even if intended for office use, and duplicators using embossed plastic (including such machines which can also operate with stencils).

7.6. It inferred from the submissions of the applicant that the digital duplicator of the subject goods is a stencil duplicator. It produces a stencil for each page that is printed. It has a thermal head  that burns holes/dots into the stencil one line at a time. After the stencil is produced, it is wrapped around a porous screen drum. Ink is deposited on the inside of the drum and spread by a roller. The ink is forced through the drum and stencil to produce a copy on the  paper. Futher stencil is a thermoplastic resin film bonded to a carrier that is permeable to ink. It operates using a thermal head that penetrates Master/stencil. The original image, read by an optical sensor, is  transmitted as a digital signal to the thermal head. The thermal head melts the thermoplastic resin film to penetrate it, allowing the ink to seep through the porous carrier via holes created by perforations.

7.7 Further, The digital duplicator BPS 150 establishes a connection with a computer by USB line. Once connected, users can select documents from their computer device and make master by sending commands directly to the duplicator. Options for the Digital Duplicator include a controller Interface for connecting to a Windows PC or Macintosh desktop environment. The Digital Duplicator has a built in scanner too. The inbuilt scanner is used only for making master. Users can select the master making through scanning and put the original to the scanner, it's started scanning the original and sending commands to the duplicator which receives the data in real time, allowing for immediate processing and making a master and output the print copies. This machine has a high copy speed and makes copies at the rate of 120 pages per minute. It has an automatic paper feeder and a total paper capacity of 1,000 sheets.

7.8 The application of GRI rule 1 mandates that the goods under consideration should be classified in accordance with the terms of the Headings and any relevant Section or Chapter Notes. 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 hectograph ic 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 S4.43), and photocopying or thermocopying apparatus and microfilm apparatus (Chapter 90)."

7.10 The HSN Explanatory Notes makes it amply clear that small printing machines, even if intended for office use and even duplicators using embossed plastic or metal sheet, which can also operate with stencils, and photocopying, etc. are specifically excluded. What follows from the above is that if there is a small printing machine like letterpress, lithographic or offset printing machine, which does the printing work and also, at the same time, performs duplicating work with stencils or otherwise and even photocopying work, it would still be treated as a printing machine and not duplicating machine.

7.1 1 On going through, the HSN Explanatory Notes of heading 8443 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 to note which is reproduced hereunder:

"(vii) Certain small office printing machines which operate by means of printing type or by the offset process, and which are improperly referred to as "duplicating machines" because their operating principles and appearance are similar to those of duplicating machines.

    Thus, there are many special machines (obviously due to advancement of technology) which are small office printing machines and they operate by means of printing type or by the offset process. It is also acknowledged that many times these machines are confused with duplicating machines and improperly referred to as such, primarily because of their appearance as duplicating machines and similar operating principles. Nevertheless, as per this Note these are not to be treated as duplicating machines, but printing machines.

8. From the above discussions and findings it is found that the technical features of the digital duplicator of the subject goods is similar to the risograph machine as discussed in the HCL case law (supra) in para 18.

Para 18 of the HCL Limited judgment reads as per follows...

    Risograhh machine consists of an automatic digital scanner, a thermal head and a printing station The prints of text/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 detectors. The light emitted from these diodes strike the original. The light falling on the dark areas of the original are absorbed. The photo detector then detects the reflected light and reads the white and black area of the original as read by image scanner. The image thus formed by the scanner is a digital image and not an optical image or continuous image. From the scanner, image signals are transferred to thermal head The thermal head is used to make master necessary for printing, based on the signals received from the image scanner. The thermal head carrying the signal received from the scanner touches the plastic film portion of the master. Since the film is heal sensitive, the plastic film melts while the base paper remains unaffected, thus, forming the image of the original documents on the base paper. This constitutes the master used for subsequent printing. The master material consists of film based on polyester plastic material boded with long fibre Japanese type paper (through which ink can penetrate). The master film is a few microns in thickness and is, thus, thin. The polyester based material is bonded to the long fibre Japanese type paper by co-polymerization. The plastic film used is heat sensitive. The paper is basically cellulose web through which ink can penetrate. The master material is in the form of a roll of paper. The paper is drawn from the roll and thermal head prepares the master. The prepared head is cut from the master and wound on the drum. The surface of the drum is a fine mesh of to allow ink to pass through the drum as well as the master while printing. A is fitted against the drum. Ink gets filled between the squeegee roller and steel m. During printing the squeegee roller rotates thereby forcing the ink to pass e drum surface, then to the master and then on to the paper to be printed.

8.1. Also in para 14 HCL Limited judgment (supra) it is stated that "What is significant is the recognition of the fact that there are many special machines (obviously due to advancement of technology-) which are small office printing machines and they operate by means of printing type or by the offset process. It is also acknowledged that many times these machines are confused with duplicating machines and improperly referred to as such, primarily because of their appearance as duplicating machines and similar operating principles. "

8.2 Further in the judgment of HCL Limited (supra) it was held in Para 25 as follow:

    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 gelatin kept the ink moist, and the copy was made by pressing an ordinary sheet of paper on to the gelatin. The modern process, which has replaced the aforesaid original version, was developed in the year 1923. In this process, the master is in two parts, the lower one like a sheet of carbon paper with the dye on the top side; the dye is transferred to the back of the top sheet when it is typed or written upon. This sheet is then clipped to a revolving drum, and the sheets to be printed are moistened with a volatile fluid which dissolves a thin layer of dye on the master, thus transferring it to the clean paper. In a duplicating machine, as provided for in the Customs Tariff Act, the stencil itself is made using a typewriter or stylus, i.e., the stencil is created outside of the machine before the same is fed and ink directly passed through it. The HSN Explanatory Motes to Customs Tariff Heading 84.72 itself confirms this understanding wherein it is stated that duplicating machines include the stencil duplicating machines which operate with waxed paper stencils previously cut by a stylus or on a typewriter.

8.3 Now it is clear that the classification of the digital duplicator is well settled by the division bench judgement of the Hon'ble Supreme Court in the case of HCL limited (supra). The ratio in the judgement of HCL ltd (supra) concluded to classify such digital duplicators in 8443 and not in 8472, is clearly applicable to this case.

9. Therefore, it can safely be deduced that the digital duplicator falls under the heading 8443 which contains printing machinery used for printing by means of plates, cylinders and other printing components of heading 8442; other printers, copying machines and facsimile machines, whether or not combined; parts and accessories thereof. Since it is a kind of printing machine which establishes a connection with a computer by USB line. Once connected, users can select documents from their computer device and make master by sending commands directly to the duplicator and options for the Digital Duplicator also include a controller Interface for connecting to a Windows PC or Macintosh desktop environment it can safely be concluded that there is a specific entry as "Other printers, copying machine and facsimile machines whether or not combined" preceding with a single dash '-' under heading 8443 and further there is a heading entry named "Other, capable of connecting to an automatic data processing machine or to a network" preceding with double dash '—' under the heading entry named "Other, capable of connecting to an automatic data processing machine or to a network". The subject goods does not falls under CTIs 84433210, 84433220, 84433230, 84433240, 84433250 and 84433260. Therefore the subject products in question are classifiable under CTI 84433290 entry "Other" and also it is the residuary CTI under sub heading 844332 and also preceded by triple dash '—'. So, as per rules of dash arrangement the CTIs i.e. 84433290 ( having triple dash '—') is a sub-classification of articles or group of articles of subheading 844332.

10. Now, further in the subject goods the spare parts/consumables such as ink Cartidges and master rolls needs to be classified. The explanatory notes in respect to parts and accessories of heading 8443 arc as following

    Subject to the general provisions regarding the classification of parts (As per the General explanatory Note to Section XVI), the heading also covers parts and accessories of the machines of his heading.

10.1 Relevant part of General explanatory Note to Section XVI are as following:

(a) Parts which are goods included in any of the headings of Chapter 84 or 85 (other than heading  84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48) are in all cases to be classified in their respective headings.

10.2. In accordance with above mentioned relevant parts of the explanatory notes, part and to be classifiable under Parts and accessories i.e the entry preceding with a lender heading 8443. Further there is a subheading 844399 i.e "others" preceded '- -" under the single dash entry of Parts and Accessories and thereafter, there cation under sub heading 844399 such as "Parts and accessories of goods of sub 1 and 844332'' preceded by triple dash '—'. Since the digital duplicator of the classifiable under CTI 844332. Thus, the spare parts/consumables such as ink or without print head assembly as the case may be) to be classified in specific (preceded by triple dash '—') i.e specifically for ink cartidges, with print head assembly or Ink OR 84439952(preccded by triple dash '—') i.e specifically for ink cartidges, without print head assembly.

10.3 Master/stencil is a thermoplastic resin film having high perforation sensitivity, bonded to a carrier that  is permeable to ink and it operates using a thermal head that penetrates Master/stencil. This Master used in subject goods to produce clear printed images. Therefore the spare parts/consumables such as master rolls to be classified in CTI 84439959(preceded by triple '---' ) i.e for Other.

11. On the basis of foregoing discussions and findings. I am of the view that the subject goods i.e Digital Duplicator is classified in CTI 84433290 and subsequently its spares parts/consumables such as ink Cartidges are classified in CTI 84439951 or 84439952 as the case may be and master rolls in CTI 84439959 of Chapter 84 of the First Schedule to the Tariff Act. 1975.

12. I rule accordingly.

(Prabhat K. Ramcshwaram)    
Customs Authority for Advance Rulings,
Mumbai.               

F. No. CAAR/CUS/APPL/44/2024-O/o Conunr-CAAR-Mumbai

This copy is certified to be a true copy of the ruling and is sent to: -

1. M/s. Lokesh Agarwal, l05,Mangli Bazar, Pendra Road, Chaattisgarh-495117.

2. The Commissioner of Customs (NS-V), JNCH, Nhava Sheva, Maharashtra.

3. The Customs Authority for Advance Rulings, 5th Floor, NDMC Building, Yashvvant Place, Satya Marg, Chanakyapuri, New Delhi-110021.
Email: cus-advrulings.del@gov.in

4. The Principal Chief Commissioner of Customs, Mumbai Customs Zone 1, Ballard Estate, Mumbai-400001. E-mail: ccu-cusmum l@nic.in

5. The Commissioner (Legal), CBIC Offices, Legal/CX.8A, Cell, 5^th floor. Hudco Vishala Building, C-Wing, Bhikaji Cama Place. R. K. Puram, New Delhi - 110066.
Email: anishgupta.irs@govin, commr.legal-cbec@nic.in

6. The Member (Customs), Central Boards of Indirect Taxes & Customs, North Block,New Delhi-110001.
Email: mem.cus-cbec@nic.in

7. The Webmaster, Central Boards of Indirect Taxes & Customs.
Email: wcbmaster.cbec@icegate.gov.in

8.Guard file.

(Vivek Dwivedi)                  
Deputy Commissioner of Customs & Secretary
Customs Authority for Advance Rulings,
Mumbai