Specific machine entry governs exemption even if additional functions are possible with adapters, and confiscation was set aside.

An imported elastic lace making machine was treated as eligible for Open General Licence coverage and the benefit of Notification No. 16/85-Cus. because it was specifically described by its principal function in the tariff and exemption entry. The controlling principle was that exemption cannot be denied merely because the machine, with special adapters or alterations, can also perform additional functions. Customs had classified the goods under Heading 84.37, but the specific entry for elastic lace making machines prevailed over a restrictive reading. On that basis, the confiscation order was set aside and the appeal was allowed.

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Issues: Whether an imported elastic lace making machine, though capable of performing more than one function with special adapters, was entitled to Open General Licence treatment and the benefit of Notification No. 16/85-Cus., dated 01-03-1985, and therefore not liable to confiscation.

Analysis: The goods were classified by customs under Heading 84.37 and the record showed a specific entry for elastic lace making machines both in the Open General Licence list and in the exemption notification. The controlling principle applied was that where a machine is specifically described with reference to its principal function, the exemption cannot be denied merely because the machine can, with alterations or special adapters, perform additional functions. The Tribunal followed its earlier decisions on the same principle and rejected the department's restrictive construction.

Conclusion: The machine was held to fall within the specific entry and to qualify for the notification benefit. The confiscation order was set aside and the appeal was allowed.

Ratio Decidendi: A machine specifically named in a tariff, import policy, or exemption entry with reference to its principal function remains eligible for the notified benefit even if it can perform additional functions.

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