Automotive testing exemption denied for equipment not specially designed exclusively for that industry.

Exemption under Notification No. 243/78-Cus. was confined to goods falling under Chapter 90 and specially designed for testing purposes in the automotive industry. The imported Sound Vibration Analyzing System was found to be capable of use across several industries, so it was not shown to be exclusively or specially designed for automotive testing. No catalogue or other material was produced to rebut that finding, and intended use in the appellants' tractor unit did not satisfy the notification condition. The exemption claim therefore failed and the rejection by the lower authorities was upheld.

---

---

Issues: Whether the imported Sound Vibration Analyzing System was entitled to exemption under Notification No. 243/78-Cus. dated 26.12.1978 as goods designed for testing purposes in the automotive industry.

Analysis: The notification granted benefit only to goods falling under Chapter 90 and specially designed for testing purposes in the automotive industry. The imported equipment was found to be capable of use in several diverse industries and not specially designed exclusively for automotive testing. No catalogue or other material was produced to contradict that finding, and the proposed use in the appellants' tractor unit did not satisfy the notification condition.

Conclusion: The exemption claim was not established and the rejection by the lower authorities was upheld.

---