Exemption notification interpretation: radio sets with auxiliary recording features still qualified for concessional duty.

Goods whose principal and admitted function was reception of radio broadcasting were treated as radio sets within the exemption notification, even though they also had sound recording and reproducing facilities. Applying common parlance and trade parlance, the additional auxiliary function did not alter the essential character of the goods or take them outside the words used in the notification. The exemption was construed strictly, but not so narrowly as to deny benefit where the goods still answered the description "Radio sets including transistor sets." The goods therefore qualified for the concessional rate of duty.

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Issues: Whether radio sets manufactured by the assessee, which also had sound recording and reproducing facilities, were covered by the expression "Radio sets including transistor sets" in the exemption notification and entitled to concessional duty.

Analysis: The goods were not in dispute under tariff heading 8527, and their basic function was reception of radio broadcasting. The presence of an additional sound recording or reproducing mechanism did not alter their essential character as radio sets. Exemption notifications are to be construed strictly, but the notification was not to be enlarged beyond its words; rather, the question was whether the goods answered the description used in the notification. Applying the common parlance and trade parlance understanding, and following the principle that a specific use or function exemption is not denied merely because the machine is capable of another function as well, the goods remained radio sets within the notification.

Conclusion: The assessee's goods fell within the scope of the notification and were entitled to the concessional rate of duty.

Ratio Decidendi: Where the principal and admitted function of the goods satisfies the description in an exemption notification, the benefit cannot be denied merely because the goods also have an additional auxiliary function not excluded by the notification.

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