Essential character governs exemption classification for multi-station machinery despite additional capabilities and alternate tooling.

An automatic multi-station machine described in the invoice and catalogue as a bolt or nut making machine qualified for concessional assessment under the relevant exemption entry because its essential character was that of a bolt or nut making machine. The fact that it was capable of additional functions, or had been tooled for making other products, did not displace its classification for exemption purposes. The operative test was the machine's fundamental description within the notified class, not its incidental versatility. On that basis, the exemption was held applicable and the departmental challenge failed.

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Issues: Whether an imported automatic multi station machine, described in the invoice and catalogue as a bolt or nut making machine but capable of additional functions and imported tooled for making chain rollers, was entitled to concessional assessment under Sr. No. 12 of the table annexed to Notification No. 40/78 dated 1-3-1978.

Analysis: The invoice described the goods as an automatic multi station forming machine for manufacture of bolts and nuts, while the catalogue identified the model as a nut former and showed the nut sizes that could be manufactured. The imported machine was acknowledged to be versatile and capable of being tooled for other products, but the decisive consideration was whether it was basically a bolt or nut making machine falling within the notification entry. The presence of additional capabilities or the fact that it had been tooled for a different use did not displace its essential character for exemption purposes. The entry covered automatic multi station bolt or nut making machines, and the machine satisfied that description.

Conclusion: The machine was covered by Sr. No. 12 of the notification and the concessional assessment was admissible; the appeal failed.

Final Conclusion: The exemption entry was held applicable on the basis of the machine's essential nature as a bolt or nut making machine, and the departmental challenge to the Collector (Appeals)' order was rejected.

Ratio Decidendi: Where an exemption entry covers a machine by its essential description, incidental versatility or capability for other uses does not defeat the exemption if the imported machine is fundamentally within the notified class.

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