Import exemption survives additional function where covered testing capability remains primary and import control breach is not established.

An imported testing instrument was held to remain within the scope of the relevant exemption and Open General Licence entries because its additional measuring capability did not displace its primary, interrelated covered function. The analysis rejected the revenue's distinction, noting that the import policy specifically covered roundness testing machines and surface finish or roughness testing machines, and no breach of import control regulations was shown. On that basis, the denial of exemption and clearance was unjustified, the impugned order was set aside, and the importer obtained consequential relief.

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Issues: Whether importing instruments capable of performing functions beyond the specified measuring function disentitles the importer to exemption under the relevant notifications and clearance under the Open General Licence entries.

Analysis: The instrument was found to perform functions that were basically interrelated, and the mere fact that it could also measure something additional did not justify denial of the exemption. The relevant import policy entries specifically covered roundness testing machines and surface finish or roughness testing machines, and no infringement of import control regulations was established. The distinction drawn by the revenue was rejected because the goods were not of the kind where an additional capability displaced their covered function.

Conclusion: The exemption and OGL benefit were available, and the denial of clearance was unjustified.

Final Conclusion: The impugned order was set aside and the appeal was allowed with consequential relief.

Ratio Decidendi: An instrument is not excluded from a specific exemption or import entitlement merely because it can also perform an additional function, where its covered function remains the primary and interrelated one contemplated by the notification or policy entry.

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