Reproducing machine exclusion under exemption notification defeats claim where microfilm reader printer prints stored material in original form.

A machine that reads material stored on microfilm and reproduces it in printed form in the same condition as the original was treated as a reproducing machine. Because Notification No. 51/70-C.E., as amended, excluded reproducing machines from exemption, the machine fell within the scheduled exclusion and could not claim the benefit. The controlling principle is that the functional character of the equipment determines whether it is covered by the exclusion, and a device reproducing stored material in original form is outside the exemption.

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Issues: Whether the Micro Film Reader Printer was entitled to exemption under Notification No. 51/70-C.E., as amended, or was excluded as a reproducing machine falling within the schedule to the notification.

Analysis: The machine read material stored on microfilm and reproduced it in printed form in the same condition as the original. A machine having that function was treated as a reproducing machine. Since the notification denied exemption to machines covered by the scheduled exclusions, the character of the machine brought it within the exclusion and outside the exemption.

Conclusion: The machine was held to be a reproducing machine and the assessee was not entitled to the exemption.

Ratio Decidendi: A machine which reproduces stored material in original form falls within the exclusion for reproducing machines under the exemption notification and cannot claim the exemption.

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