Exemption for precision surface grinding machines applies where imported equipment is also capable of surface grinding operations.

An imported universal precision internal grinding machine was found entitled to concessional duty under Notification No. 154/86-Cus. because its catalogue showed that it could also perform surface grinding operations. The exemption entry covered precision surface grinding machines for tool-room use, and the machine's technical capabilities brought it within that description. The denial of benefit on the ground that it was only an internal grinding machine was rejected, and the exemption was allowed.

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Issues: Whether an imported universal precision internal grinding machine, which was shown by the catalogue to perform surface grinding operations, was entitled to the benefit of Notification No. 154/86-Cus. dated 1-4-1986 granting concessional duty to precision surface grinding machines for tool-room use.

Analysis: The notification extended partial exemption to precision surface grinding machines described by their specified technical parameters. The catalogue of the imported machine showed that, in addition to internal grinding, it could also perform surface grinding and external grinding operations. Since the machine was capable of performing surface grinding functions, its description was held to fall within the scope of the exemption entry. The denial of benefit on the ground that it was only an internal grinding machine was therefore not accepted.

Conclusion: The machine was held entitled to the benefit of Notification No. 154/86-Cus. dated 1-4-1986, and the denial of exemption was set aside.

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