1. This is an appeal against order dated 8-12-1992 passed by the Collector Central Excise (Appeals) Bangalore. The appellants filed Bill of Entry No. 003838, dated 19-2-1991 for the clearance of one Emco Compact 5-CNC Computer Numerically Controlled Universal Machine Tool and one CNC Milling Machine with Electrical Equipment along with accessories totally valued at Rs. 5,91,298/-. The goods were classified under sub-heading 8459.31 of the Customs Tariff Act, 1985. The importers claimed the clearance of the imported CNC-5 Universal Machine valued at Rs. 2,16,561 and CNC Milling Machine with electrical equipment valued at Rs. 3,14,782 along with accessories for the machines valued at Rs. 1,57,852 in terms of Notification No. 229/88, dated 1-8-1988 against the Pass Book issued to them for the import of Scientific and technical instruments, apparatus and equipments. The Assistant Collector vide his order dated 24-8-1992 denied the exemption under Notification 229/88 in respect of the goods in question on the grounds that the pass book...had ceased to exist since it had been cancelled due to expiry of its validity period. Being aggrieved by the order passed by the Assistant Collector the appellants preferred an appeal before the Collector (Appeals) and contended that the pass book in question was valid on 22-3-1991 when the goods had arrived and therefore it had to be deemed as valid for the goods in question. The Collector (Appeals) accepted the appellants's claim that the pass book in question was valid on the date of arrival of the goods. He however, held that the imported Emco Compact 5-CNC Computer numerically controlled universal machine tool and one CNC Milling Machine with electrical equipment and accessories totally valued at Rs. 5,91,298 could not be deemed as covered by the pass book in question since in terms of Notification 229/88, dated 1-8-1988 the appellants were eligible to import a single item not exceeding Rs. 5 Lakhs in value, whereas the imported machines which fell in the category of 'Machine Tools' and had to be deemed as a single item for the purpose of condition (f) of the Notification valued a over Rs. 5 Lakhs.
2. Appearing on behalf of the appellants Dr. Nanjundaram submitted that the Collector (Appeals) had erred in holding that the imported machines in question were not covered by Notification No. 229/88. He added that each of the machines had to be treated as a separate item for the purpose of condition (f) of the Notification. He argued that the value of each machine along with accessories being below Rs. 5 Lakhs, each one of them had to be deemed as covered by the Notification. On these grounds he pleaded that the impugned order may be set aside.
3. On behalf of the respondent, Shri A.K. Singhal, JDR reiterated the finding of the Collector (Appeals) and contended that for the purpose of condition (f) of the notification the aggregate value of the machines which fell in the category of 'Machine Tools' was relevant. He contended that there was no infirmity in the impugned order and pleaded for rejection of the appeal.
4. We have examined the records of the case and considered the submissions made on behalf of both sides. For the proper appreciation of the rival contentions we refer to the following extracts of Notification No. 229/88, dated 1-8-1988.
229/88-Cus. dated 1-8-1988 : In exercise of the powers conferred by Sub-section (1) of Section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts all scientific and technical instruments, apparatus, equipments, accessories, spare parts and consumable goods, when imported into India by a public funded research institution or a University (hereinafter called "importer"), from - (a) the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), and (b) the whole of the additional duty leviable thereon under Section 3 of the said Customs Tariff Act, (f) in the case of an instrument or apparatus or equipment or accessory or spare part, the CIF value of any single item thereof shall not exceed Rs. 5 lakhs, and in the case of consumable goods, the aggregate CIF value of any single item of consumable goods shall not exceed Rs. 5 lakhs in the said year." On a plain reading of condition (f) of the notification it follows that the words "CIF value of any single item thereof shall not exceed Rs. 5 lakhs" imply that imports falling under any of the category, namely, instruments, apparatus, equipment, accessories, spare parts, the value of a single or individual item should not to exceed Rs. 5 lakhs. Only in respect of consumable goods...it has been specified that the aggregate CIF value of any single item of consumable goods shall not to exceed Rs. 5 lakhs in a particular year.
5. In view of the foregoing we hold that each of the two imported machines along with their accessories, equipments were to be treated for the purpose of condition (f) of Notification No. 229/88 as separate items and they were eligible for the exemption under the notification since the value of each of them taken separately or individually was not in excess of Rs. 5 lakhs.
6. In view of the above discussion we set aside the impugned order and allow the appeal with consequential relief to the appellants.