Exemption for measuring machines with accessories confirmed where the machine can perform listed measurements through its effective capability.

A measuring machine was held eligible for exemption under the relevant customs notification because, when used with its supplied accessories, it could perform the listed measurements covered by the exemption entry. Earlier Tribunal rulings were treated as supporting the view that accessories form part of the machine's effective capability, and the product catalogue also indicated expandable measurement functions. The benefit could not be denied merely because the machine required accessories for full functionality. The impugned order was set aside and concessional duty benefit was allowed.

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Issues: Whether the imported Universal Measuring Machine Validator was entitled to exemption under Serial No. 9 of Notification No. 49/78-Cus dated 1-3-1978.

Analysis: The earlier Tribunal decisions had held that universal measuring machines are to be treated as capable of performing the listed measurements when used with the accessories supplied with them, because such accessories form part of the machine's effective capability. The catalogue also showed that the Validator system could be expanded by adding capabilities, which supported the view that the machine was designed to perform the relevant measuring functions with accessories if necessary.

Conclusion: The exemption was available and the appeal succeeded.

Final Conclusion: The impugned order was set aside and the import was held eligible for the notified concessional duty benefit.

Ratio Decidendi: For purposes of an exemption entry covering universal measuring instruments, a measuring machine that can perform the listed measurements with the help of its accessories satisfies the notification requirement and cannot be denied the benefit merely because accessories are needed for full functionality.

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