Exemption for imported measuring instruments depends on functional capability with necessary accessories, not every listed parameter or probe.

Exemption under Item 9 of Notification No. 49 dated 1 March 1978 turned on whether the imported universal measuring instrument, with the probes actually brought in, was capable of performing the relevant measurements. The Bombay HC analysis states that special probes were not necessary where the imported machine, together with required accessories, could measure internal and external threads and satisfy the contemplated function. The item did not require every listed parameter or every possible accessory to be imported in each case. On that reasoning, the exemption claim and refund were accepted, and the contrary orders were set aside.

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Issues: Whether the imported universal measuring instrument with the probes actually imported satisfied Item 9 of Notification No. 49 dated 1st March 1978 so as to qualify for exemption and refund, notwithstanding the non-import of special probes and the inability to meet every parameter mentioned in the item.

Analysis: The imported literature showed that the probes brought in with the measuring instrument were sufficient to measure internal and external threads and that special probes were not necessary. The relevant enquiry was whether the imported machine, with such accessories as were necessary, was capable of the measurements contemplated by Item 9. The item did not require all listed parameters to be satisfied in every case. Since all universal measuring machines operate with accessories and the importers' requirements were limited, the absence of special probes did not defeat the exemption claim.

Conclusion: The petitioners were held entitled to the benefit of the exemption notification and to refund, and the contrary orders were set aside.

Ratio Decidendi: For exemption under the notification, the decisive test was the capability of the imported machine, with necessary accessories, to perform the relevant measurement and not the import of every possible accessory or satisfaction of every listed parameter.

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