2018 (12) TMI 154 – CESTAT ALLAHABAD – TMI – Concessional rate of duty – manufacture of Usha brand Sewing Machine Heads – benefit of N/N. 01/2011-CE dated 01.03.2011 claimed – benefit of notification denied on the ground that the said Sewing Machine Head was having fly wheel with a groove and that groove could facilitate attachment of electric motor to the said Sewing Machine Heads – Held that:- It is understood from the wording of entry that if Sewing Machine are cleared in such a manner that they are not operated with electric motors then such Sewing Machines are cleared from the factory of manufacturer, thus they are eligible for the benefit of N/N. 1/2011-CE dated 01.03.2011 as amended by N/N. 8/2014-CE dated 11.07.2014.
–
It is undisputed fact that the appellants were manufacturing only Sewing Machine Heads which were cleared without any electrical control or electric motor – appellant were eligible for the benefit – appeal allowed – decided in favor of appellant. – APPEAL No
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
the appellant was not admissible to avail the benefit of said notification for the reason that the said Sewing Machine Head was having fly wheel with a groove and that groove could facilitate attachment of electric motor to the said Sewing Machine Heads. The proceedings were initiated for demand of differential duty by denying the said notification through show cause notice dated 06.01.2017 wherein a demand of Central Excise duty of ₹ 49,43,870/- was raised. The said show cause notice was adjudicated through Order-in-Original dated 28.03.2017. The appellant contended before the Original Authority that they were manufacturing Sewing Machine Heads which were supplied to the customers without any electric control or electric motor and that no provision was made by them in the head for fitting/attaching any motor and therefore, the goods manufactured by them were eligible for benefit of said notification. The Original Authority did not appreciate the said arguments and confirmed the
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
supported the impugned order. 5. Having considered the rival contentions and on perusal of records and on careful examination of the entry in respect of which the said exemption was provided, we note that we understand from the wording of entry that if Sewing Machine are cleared in such a manner that they are not operated with electric motors then such Sewing Machines are cleared from the factory of manufacturer, thus they are eligible for the benefit of Notification No.1/2011-CE dated 01.03.2011 as amended by Notification No.8/2014-CE dated 11.07.2014. We also note that it is undisputed fact that the appellants were manufacturing only Sewing Machine Heads which were cleared without any electrical control or electric motor. We, therefore, hold that during the relevant period appellants were eligible for the benefit of said Notification No.1/2011-CE as amended. 6. In view of our finds, we set aside the impugned order and allow the appeal with consequential relief to the appellant. (Pron
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =