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Issues Involved:
1. Interpretation of Customs Notification No. 40/78. 2. Classification of imported machines under the said Notification. 3. Applicability of technical opinions from DGTD. 4. Relevance of previous judgments on similar matters. 5. Admissibility of additional evidence at the appellate stage. Detailed Analysis: 1. Interpretation of Customs Notification No. 40/78: The primary issue revolves around the interpretation of Sr. No. 2 of Customs Notification No. 40/78, which provides benefits for "Tool Room Precision Coordinate Jig Boring Machine with or without C.N.C." The Revenue contends that the imported machines, which also perform milling and drilling functions, do not fall under this category. The Tribunal has emphasized that the Notification must be strictly construed and cannot be extended to machines that perform multiple independent functions. 2. Classification of Imported Machines: - M/s. Precision Tools & Components: The machine described as "Tool Room Precision Coordinate Jig Boring Machine Type-WKV 100" was initially assessed provisionally. The Assistant Collector rejected the claim for final assessment under the Notification, noting the machine's capability to perform drilling and milling functions. The Collector (Appeals) disagreed, accepting the DGTD's opinion and allowing the claim. However, the Revenue argued that the machine's multifunctionality disqualified it from the Notification's benefits. - M/s. XLO Machine Tools Ltd.: The machine described as "Horizontal and Manual Precision Jig Boring Machine with Accessories" was also rejected by the Assistant Collector on similar grounds. The Collector (Appeals) held that the machine's primary function was boring, with milling being a subsidiary function, thus qualifying it under the Notification. The Revenue disagreed, stating that the machine's capability to perform both functions independently made it ineligible. - M/s. D.C.L. Finance Ltd.: The machine described as "STANKO Import (Russia) Model 2431 CF 10 (MCK3M) High Precision Tool Room Coordinate Jig Boring Machine" was similarly rejected by the Assistant Collector. The Collector (Appeals) held that the machine's other functions were ancillary to its primary boring function. The Revenue argued that the machine's multifunctionality disqualified it from the Notification's benefits. 3. Applicability of Technical Opinions from DGTD: The DGTD's opinion was a point of contention. The Revenue argued that the DGTD's opinion was sought only to determine if the machine was a tool room precision machine, not to decide its eligibility under the Notification. The Tribunal referenced the judgment in Guest Keen Williams Ltd. v. Collector of Customs, emphasizing that licensing opinions cannot automatically apply to duty exemption interpretations. 4. Relevance of Previous Judgments: - Batliboi & Co. Ltd. v. Collector of Customs: The Assistant Collector relied on this judgment, which held that multifunctional machines do not qualify for the Notification's benefits. - Sukeshan Equipments Pvt. Ltd. v. Collector of Customs: The Tribunal extensively examined technical literature and concluded that multifunctional machines do not fit the Notification's description. - HMT Ltd. v. Collector of Central Excise: The Tribunal noted that this judgment was based on oral statements without detailed technical examination, making it distinguishable from the present cases. 5. Admissibility of Additional Evidence at the Appellate Stage: The Tribunal rejected the additional affidavit evidence submitted by M/s. DCL Finance Ltd., citing the judgment in MMTC's case, which held that belated evidence produced to buttress a case is not credible. Conclusion: The Tribunal, after a detailed examination of the technical aspects and previous judgments, concluded that the imported machines in all three cases did not qualify for the benefits under Sr. No. 2 of Customs Notification No. 40/78 due to their multifunctionality. The appeals of the Revenue were allowed, and the impugned orders were set aside.
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