Exemption notification interpretation: "and" read as "or" for alternative FFS machine accessories, extending duty benefit.

A form, fill and seal machine with gas flushing facility but without vacuumising equipment was treated as covered by the exemption entry because the accessories were construed as alternative modes of use. The word "and" in the notification was read disjunctively as "or" in light of the scheme and earlier Tribunal decisions, and the later amendment reinforced that either accessory, or both, could qualify. On that construction, the machine was eligible for exemption under the relevant customs notification.

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Issues: Whether a form, fill and seal machine with gas flushing facility, but without vacuumising equipment, was entitled to exemption under Sl. No. 17 of Notification No. 125/86-Cus dated 17-02-1986.

Analysis: The exemption entry referred to FFS machines with vacuumising and inert gas flushing. Following earlier Tribunal decisions, the expression "and" in the entry was read disjunctively as "or" because vacuumising and gas flushing are alternative accessories suited to different packing requirements. The later amendment in Notification No. 65/89-Cus dated 01-03-1989 also supported this construction by recognising concessional duty where the machine is imported with either accessory or both.

Conclusion: The machine was held eligible for exemption under Sl. No. 17 of Notification No. 125/86-Cus.

Ratio Decidendi: Where the scheme and context of an exemption notification show that two accessories are alternative modes of use, the word "and" in the exemption entry may be construed as "or" so that either accessory qualifies for the benefit.

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