Technical classification of imported machinery under an exemption notification turned on factual features and persuasive expert guidance.

An exemption notification using the undefined technical phrase "rotary milling machine" was interpreted on a common-sense factual basis, with the imported crank shaft milling machine found to exhibit rotational movement and to answer that description. The contemporaneous DGTD opinion and import documents were treated as persuasive support, while an engineering encyclopaedia extract and the wording of other notification entries did not displace that classification. The machine was therefore covered by the notification benefit, and the assessee obtained the exemption consequence.

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Issues: Whether the imported automatic crank shaft milling machine qualified as a rotary milling machine for crank shaft so as to receive the benefit of Notification No. 40/78-Customs.

Analysis: The notification used the expression "rotary milling machine" but did not define it. In the absence of a technical or statutory definition, the machine had to be identified on a common sense and factual basis. The record showed rotational movement in the imported machine, with the milling cutter rotating at times and the work piece rotating at other times. The contemporaneous opinion of the DGTD, supported by the import documents, described the goods as a rotary milling machine for crank shaft and could be taken as a persuasive guide, though not as binding evidence. The excerpt relied upon from the engineering encyclopaedia did not displace this conclusion, and the description of other items in the notification did not control the interpretation of the item in question.

Conclusion: The imported machine was held to be a rotary milling machine for crank shaft and therefore eligible for the notification benefit, in favour of the assessee.

Final Conclusion: The appeal succeeded and the assessee obtained the consequential relief flowing from recognition of the imported machine as covered by the exemption notification.

Ratio Decidendi: Where an exemption notification uses a technical expression without defining it, the classification may be determined on the factual nature of the machine and relevant expert guidance, and the benefit cannot be denied if the machine substantially answers the described technical category.

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