Checking machine classification for customs concession upheld where accurate measurement was the practical means of verification.

An imported radial clearance measuring instrument qualified as a checking machine for concessional duty because its technical literature, supplier certificate and catalogue showed that it measured radial clearance and used that result to classify bearings into graded categories. The distinction drawn between measuring and checking was treated as artificial on the facts, since accurate measurement was the practical means by which the instrument verified radial displacement. On that basis, the goods fell within Notification No. 161/86-Cus., the denial of concession was set aside, and the importer's claim succeeded.

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Issues: Whether the imported radial clearance measuring instrument was entitled to concessional duty under Notification No. 161/86-Cus. as a checking machine, and whether the distinction between measuring and checking excluded the goods from the notification.

Analysis: The instrument's technical literature, supplier's certificate, and catalogue showed that it was designed to measure radial clearance and to classify bearings into graded categories based on the measured result. On that basis, the measuring function was held to be the practical means by which the machine checked radial displacement accurately. The distinction suggested by the Revenue between measuring and checking was rejected as artificial in the facts of the case.

Conclusion: The imported machine was held to be a checking machine covered by the notification, and the claim for concessional duty succeeded.

Final Conclusion: The assessment denying the concession was set aside and the appeal was allowed in favour of the importer.

Ratio Decidendi: Where the commercial and technical function of an instrument is to verify and classify a bearing condition through accurate measurement, the instrument may be treated as a checking machine for the purpose of fiscal concession.

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