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Issues:
- Interpretation of Notification No. 161/86-Cus. for concessional rate of duty - Classification of imported goods as checking machine or measuring instrument Interpretation of Notification No. 161/86-Cus. for concessional rate of duty: The appeal involved the interpretation of Notification No. 161/86-Cus. for the concessional rate of duty under Item 4A. The appellants imported a Radial Clearance checking machine instrument with electronic measuring and control system and claimed the concessional rate of duty under the notification. The claim was rejected on the grounds that the goods were not purely radial checking machines as specified under the notification but were considered measuring instruments. The Ld. Counsel argued that while measuring radial clearance, the basic function is only checking of radial clearance, thus, it should be considered a checking machine. On the other hand, the Revenue's representative contended that measuring and checking are distinct concepts and not interchangeable. Classification of imported goods as checking machine or measuring instrument: The Tribunal examined technical literature related to the radial clearance measuring instrument in question and found that the goods were designed to measure radial clearances. The definition of radial internal clearances provided by the Indian Standard Institution was considered, along with a letter from the suppliers certifying the function of the radial clearance measuring machine. The machine was described as checking radial clearance of bearings and sorting them into different groups based on the results displayed digitally on the electronic measuring system. The Tribunal concluded that the machine, despite being a measuring instrument, was essentially a checking machine as it accurately checked radial displacements. The distinction between checking and measuring was dismissed, emphasizing that accurate measurement is integral to checking. Consequently, the impugned order was set aside, and the appeal was allowed. This judgment highlights the importance of technical specifications and functional analysis in determining the classification of imported goods for the application of concessional rates of duty under specific notifications. The decision underscores the need for a comprehensive understanding of the functions and capabilities of the imported goods to ascertain their correct classification under relevant customs regulations.
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