Exemption for imported testing machinery upheld where additional test capabilities did not defeat notification eligibility.

Imported machinery used for Vickers hardness testing remained eligible for exemption under Notification No. 49/78 even though the catalogue also mentioned possible Knoop and Scratch tests. The controlling factor was the purpose of import and whether the machine was covered by the import licence and the exemption notification; a mere description of additional potential functions did not by itself defeat exemption. Because the authorities refused the benefit only on the basis that the machine could perform multiple tests, that ground was insufficient, and the denial of exemption was unsustainable.

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Issues: Whether the imported Vickers Hardness Tester was entitled to the benefit of Notification No. 49/78 despite being capable of performing other tests as well.

Analysis: The machinery was imported for Vickers Hardness testing, and the import licence also covered machinery for that test. The catalogue's indication that the machine could additionally be used for Knoop and Scratch tests did not establish that those functions were available without further accessories. The controlling consideration was the use for which the machine was imported and its eligibility under the exemption notification, not the mere possibility of additional functions. The authorities had denied the notification benefit only because the machine was described as capable of multiple tests, which was not a sufficient ground to refuse exemption.

Conclusion: The appellant was entitled to the benefit of Notification No. 49/78, and the denial of exemption was unsustainable.

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