Exemption for equipment designed for electronics denied where microscopes lacked any special feature linking them to that industry

Exemption under Notification No. 118/80 applied only to machinery or equipment designed for use in the electronic industry, which required a special feature or characteristic linking the goods more closely to that industry than to general use. Sterozoom microscopes were found to be versatile items usable in several fields, and no specific design feature was shown to make them specially suited to the electronic industry. On that basis, they did not meet the notification's requirement and the exemption claim was rejected.

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Issues: Whether the imported Sterozoom microscopes were entitled to exemption under Notification No. 118/80 as machinery or equipment designed for use in the electronic industry.

Analysis: The notification was issued to encourage the electronic industry and extended exemption to specified machinery and equipment designed for that industry. To qualify, the importer had to show some special feature or characteristic making the equipment more useful in the electronic industry than for its other general uses. The microscopes were described as versatile equipment capable of use in several fields, and no specific feature was shown to connect them specially with the electronic industry.

Conclusion: The microscopes did not satisfy the requirement of being designed for use in the electronic industry and were not eligible for exemption under the notification, against the assessee.

Final Conclusion: The appeal failed and the exemption claim was rejected.

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