Bajaj Tempo Ltd. Vs. Collector of Customs - Court Judgment

Excerpt:
1. this appeal is directed against the order-in-appeal no. 241/88-bch, dated 6-1-1988 of collector of customs (appeals), bombay. the appellants imported universal measuring machine validator and claimed classification of these machines under cth 90.16(2). the claim of the appellants for assessment to concessional rate of duty under notification no. 49/78, dated 1-3-1978 was rejected on the ground that notification no. 49/78 covers universal measuring instruments while goods imported are machines and that catalogue does not prove that the machines are for checking gauges, tools, jigs thereof including tools and necessary instrument. this order was upheld and their appeal was rejected by the collector (appeals).3. arguing for the revenue, the ld. d.r. while reiterating the department's arguments submits in all fairness that the matter is covered against them by order of the tribunal reported in 1988 (37) e.l.t. 61 : 1990 (49) e.l.t. 223.4. we have heard ld. d.r. and perused the records of the case. the classification of universal measuring machine and its entitlement to exemption under serial no. 9 of notification no. 49/78 came up for consideration before tribunal in case of kinetic engineering ltd. - 1988 (37) e.l.t. 61. the tribunal held that the use of accessories listed in the catalogue for the imported machine would make it capable of making all the measurements listed.at serial no. 9 of the catalogue.all the universal measuring machines have accessories without which they could not do the measurements. as the machine needs accessories to do all the measurements, the entry at serial no. 9 of the notification has to be interpreted to mean that the machine should be capable, with the help of accessories if necessary, of conducting the measurements listed therein. this decision was followed in the case of collector of customs v. escorts ltd. - 1990 (49) e.l.t. 223 - wherein it was held that measuring machines imported are eligible for benefit under serial no. 9 of notification no. 49/78-cus. going through the catalogue placed at page 28, we find it indicates : "all validator systems are future engineered to satisfy your immediate and long range needs - at the lowest possible cost. simply add capabilities to your validator as your needs indicate, without jeopardizing your original sound investment. validator systems defy obsolescence." 5. this indicates that universal measurement machinery is capable of performing different functions with the help of accessories and, therefore, following the ratio of tribunal's orders in case of escorts ltd. supra and kinetic engineering supra, we set aside the impugned order and allow the appeal.

Judgment:
1. This appeal is directed against the Order-in-Appeal No. 241/88-BCH, dated 6-1-1988 of Collector of Customs (Appeals), Bombay. The appellants imported Universal Measuring Machine Validator and claimed classification of these machines under CTH 90.16(2). The claim of the appellants for assessment to concessional rate of duty under Notification No. 49/78, dated 1-3-1978 was rejected on the ground that Notification No. 49/78 covers universal measuring instruments while goods imported are machines and that catalogue does not prove that the machines are for checking gauges, tools, jigs thereof including tools and necessary instrument. This order was upheld and their appeal was rejected by the Collector (Appeals).

3. Arguing for the Revenue, the ld. D.R. while reiterating the Department's arguments submits in all fairness that the matter is covered against them by order of the Tribunal reported in 1988 (37) E.L.T. 61 : 1990 (49) E.L.T. 223.

4. We have heard ld. D.R. and perused the records of the case. The classification of Universal Measuring Machine and its entitlement to exemption under Serial No. 9 of Notification No. 49/78 came up for consideration before Tribunal in case of Kinetic Engineering Ltd. - 1988 (37) E.L.T. 61. The Tribunal held that the use of accessories listed in the catalogue for the imported machine would make it capable of making all the measurements listed.at Serial No. 9 of the catalogue.

All the Universal Measuring Machines have accessories without which they could not do the measurements. As the machine needs accessories to do all the measurements, the entry at Serial No. 9 of the notification has to be interpreted to mean that the machine should be capable, with the help of accessories if necessary, of conducting the measurements listed therein. This decision was followed in the case of Collector of Customs v. Escorts Ltd. - 1990 (49) E.L.T. 223 - wherein it was held that measuring machines imported are eligible for benefit under Serial No. 9 of Notification No. 49/78-Cus. Going through the catalogue placed at Page 28, we find it indicates : "All Validator systems are Future Engineered to satisfy your immediate and long range needs - at the lowest possible cost. Simply add capabilities to your Validator as your needs indicate, without jeopardizing your original sound investment. Validator systems defy obsolescence." 5. This indicates that universal measurement machinery is capable of performing different functions with the help of accessories and, therefore, following the ratio of Tribunal's Orders in case of Escorts Ltd. Supra and Kinetic Engineering Supra, we set aside the impugned order and allow the appeal.