Machine tools classification governs exemption eligibility where metal-working equipment is accepted as machine tools, not merely machines.

Computer numerically controlled hydraulic presses, pipe and tube bending machines, special purpose metal-working machines and honing machines were treated as machine tools for exemption purposes under Notification No. 253/88. The only surviving departmental objection was that the goods were machines rather than machine tools, but that distinction was insufficient once their classification as machine tools was not otherwise disputed. Because machine tools are themselves machines, the exemption could not be denied on that ground alone. The exemption under Notification No. 253/88 was therefore held applicable to the assessee.

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Issues: Whether the goods in question, being computer numerically controlled hydraulic press, pipes, tube bending machines, special purpose machines for working metal and honing machines, were classifiable as machine tools and eligible for exemption under Notification No. 253/88.

Analysis: The department's only objection was that the goods were more appropriately machines and not machine tools. The classification as machine tools was not in dispute, as the goods stood classifiable under the relevant headings and the notification dispute alone survived. Once the department did not challenge their treatment as machine tools, there was no basis to deny the exemption merely on the asserted distinction between machines and machine tools, since machine tools are themselves machines.

Conclusion: The issue was decided in favour of the assessee, and the exemption under Notification No. 253/88 was held applicable.

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