Functional capability test governs customs exemption where a machine can perform notified measurements with necessary accessories.

Exemption under Notification No. 49/78-Cus. turned on the imported machine's functional capability, not on whether every accessory was present at the time of import. The CEGAT noted that the decisive test was whether the universal measuring machine, with necessary accessories where required, could perform the measurements specified in the notification. As the machine was capable of doing so with appropriate accessories, concessional assessment could not be denied merely because all accessories were not imported. The appeal was allowed with consequential relief, confirming that a notification framed by reference to function must be applied according to practical capability rather than physical completeness at import.

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Issues: Whether the imported universal measuring machine was entitled to concessional assessment under Notification No. 49/78-Cus. on the basis that, with necessary accessories, it was capable of performing the measurements described in the notification.

Analysis: The relevant criterion was the machine's design and capacity to perform the specified measurements, not the accidental absence of every accessory at the point of importation. The notification had to be read to cover a machine which, with the help of accessories where needed, could conduct the listed measurements. Since the imported machine was capable of doing so with appropriate accessories, the benefit of the notification could not be denied.

Conclusion: The imported goods were held entitled to the benefit of Notification No. 49/78-Cus., and the appeal was allowed with consequential relief.

Final Conclusion: Exemption under the notification could not be refused merely because all accessories were not imported, where the machine itself was capable of the notified functions with the necessary accessories.

Ratio Decidendi: For exemption under a notification describing functional capability, the decisive test is whether the imported goods are capable of performing the specified function with necessary accessories, rather than whether every accessory is physically present at importation.

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