Customs exemption for imported machinery denied where factual classification found the goods outside the notification and no natural justice breach was shown.

Centreless grinding machines were held not to fall within Item No. 2 of Notification No. 26/88 because the customs authorities, after examining the goods and relevant drawings, concluded that they did not match the notified description. That factual finding was accepted by the Tribunal, and appellate interference under Section 130E of the Customs Act was not warranted where the subordinate authorities had considered the material, reached a bona fide conclusion, and issued a speaking order. No violation of natural justice was established, and the exemption was denied.

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Issues: Whether the imported centreless grinding machines were covered by Notification No. 26/88 and entitled the importer to exemption.

Analysis: The customs authorities examined the machines and the relevant drawings and found that the goods did not answer the description in Item No. 2 of the notification. That factual determination was accepted by the Tribunal. In appellate jurisdiction under Section 130E of the Customs Act, interference is not warranted where the subordinate authorities have considered the relevant materials, reached a bona fide conclusion, and passed a speaking order on the nature of the imported goods and the entry under which they fall. No violation of natural justice was established.

Conclusion: The machines were not covered by Notification No. 26/88 and the importer was not entitled to the exemption.

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