Essential function test for internal grinding machines confirms exemption where groove shape does not change machine character.

An automatic internal cylindrical grinding machine was treated as covered by S. No. 27 of Notification No. 40/78 because the decisive factor was its essential function as an internal grinder for grinding internal grooves or tracks of bearing outer races. Its ability to grind different groove profiles, including cylindrical, radial or special shapes, did not take it outside the entry. The use of different dressers for varying groove profiles did not alter the machine's character, and the record supported that the imported machine was fitted only with a radial dresser. The denial of exemption was therefore unsustainable.

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Issues: Whether the imported automatic antifriction internal plunge grinding machine was covered by S. No. 27 of Notification No. 40/78 so as to qualify for the exemption.

Analysis: The machine was described as an automatic internal cylindrical grinding machine and the dispute turned on whether its ability to grind grooves of cylindrical, radial or special shape took it outside the notified entry. The relevant entry covered an automatic cycle internal grinder for grinding internal grooves or tracks of bearing outer races. The determining consideration was the essential function of the machine, not the shape of the groove being ground. The fact that different dressers may be used for different groove profiles did not alter the character of the machine as an internal grinder. The record also supported the appellants' case that the imported machine was fitted only with a radial dresser.

Conclusion: The machine fell within S. No. 27 of Notification No. 40/78 and the denial of exemption was unsustainable.

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