Exemption notification for hydraulic leather shaving machines extends to blades designed for use with those machines.

An exemption notification applicable to hydraulic leather shaving machines was held to extend to leather shaving blades designed for use with those machines. The duty entry for the blades was linked to the rate applicable to the machine or mechanical appliance with which the cutting blade was designed to operate, so the benefit could not be denied merely because the imported goods were blades rather than the complete machine. The cited precedent supported this interpretation, and the denial of exemption was found unsustainable.

---

---

Issues: Whether Notification No. 42/78 as amended by Notification No. 214/78 applied to leather shaving blades used in hydraulic leather shaving machines.

Analysis: The exemption under the notification was available to hydraulic leather shaving machines. The duty entry for the blades was tied to the rate applicable to the machine or mechanical appliance with which the cutting blade was designed to be used. On that footing, and following the cited precedent, the benefit of the notification could not be denied merely because the goods imported were blades used in the machine and not the complete machine itself.

Conclusion: The notification applied to the blades used in the hydraulic leather shaving machines, and the denial of exemption was unsustainable.

Final Conclusion: The impugned order was set aside and the assessee succeeded in the appeal.

Ratio Decidendi: Where the tariff rate for an article is determined with reference to the machine with which it is designed to be used, an exemption notification applicable to that machine extends to the article for the purpose of determining the duty liability.

---