Exemption for machinery used in fuel injection equipment manufacture upheld despite incidental cleaning functions

Exemption under Notification No. 65/1994 was available for machinery installed in the importer's own factory for manufacture of fuel injection equipment, and the required installation certificate was admitted to be satisfied. The notification did not expressly exclude a machine that also performed cleaning operations. On that basis, the machine's dual use for cleaning did not justify denial of the exemption, and the benefit was allowed.

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Issues: Whether Ultra Seal Cascade Washing Machine was eligible for exemption under Notification No. 65/1994 dated 1-3-1994 when used in the manufacture of fuel injection equipment, and whether the fact that the machine also performed cleaning operations disentitled the importer from the exemption.

Analysis: The notification granted exemption to machinery, tools or instruments falling under the specified tariff chapters, subject to production of a certificate showing installation in the importer's own factory for manufacture of fuel injection equipment. That condition was admitted to have been fulfilled. The notification contained no express restriction excluding machinery that also performed cleaning functions. In the absence of such a restriction, the dual use of the machine for cleaning did not furnish a valid basis to deny the benefit of exemption.

Conclusion: The machine was held to be eligible for exemption under Notification No. 65/1994, and the denial of the benefit was rejected.

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