Tariff classification of presetting units turned on their multifunction use, defeating measuring-instrument treatment and exemption claim.

Imported micro-set presetting units for boring and milling tools were examined for tariff classification based on their nature and function. Because the evidence did not show exclusive use as measuring or checking instruments, and the catalogue indicated additional uses such as spindle tooling and lathe tooling, the goods were treated as machines having individual function under Heading 8479.89 rather than as measuring or checking instruments under Heading 9031.80. On that basis, the exemption under Notification No. 118/86-Cus. was also held unavailable.

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Issues: Whether the imported micro-set presetting unit for boring and milling tools was classifiable as a measuring or checking instrument under Heading 9031.80, or as a machine having an individual function under Heading 8479.89, and whether the benefit of Notification No. 118/86-Cus. was available.

Analysis: The deciding factor was the nature and function of the imported goods. The evidence produced did not establish that the machine performed only measuring or checking operations. The catalogue relied on by the appellant did not specifically relate to the imported model and showed that the presetting machine was also used for functions beyond mere measurement, including spindle tooling and lathe tooling. In the absence of material supporting exclusive use as a measuring instrument, the goods were held to fall within the heading for machines having individual functions.

Conclusion: The classification under Heading 8479.89 was upheld and the claim for classification under Heading 9031.80 failed. The benefit of Notification No. 118/86-Cus. was consequently not available to the appellant.

Final Conclusion: The import was not treated as a measuring or checking instrument, and the revenue classification was sustained, resulting in rejection of the appeal.

Ratio Decidendi: Where the evidence does not show that an imported presetting unit performs only measuring or checking operations, and the goods are capable of performing additional functions, it is classifiable as a machine having an individual function rather than as a measuring instrument.

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