Exemption for machinery used in production requires proof that the item is a complete machine, not merely a component.

Notification No. 51/93-C.E., Serial No. 20, covered machinery used for the production of a commodity under Chapter Heading 85.43, but the exemption was available only if the claimant proved that the item was a complete machinery unit and not merely a component or spare part. The fabric infeed device panel was not substantiated by technical literature or other material as an independent complete machine, and the lower appellate authority had not recorded a finding on that crucial aspect. On that basis, the notification benefit was denied because the item did not satisfy the description of complete machinery used for production.

---

---

Issues: Whether the fabric infeed device panel was eligible for the benefit of Notification No. 51/93-C.E. under serial No. 20 of the Table as machinery used for the production of a commodity.

Analysis: Serial No. 20 of the notification covered goods falling under Chapter Heading 85.43 described as machinery used for the production of a commodity. The claim depended on showing that the item was a complete unit of machinery and not merely a part or spare. The respondents did not substantiate, by material such as technical literature or otherwise, that the fabric infeed device panel was itself a complete machinery unit. The lower appellate authority also did not record a finding on this aspect and merely followed an earlier order relating to a complete fabric infeed device.

Conclusion: The item did not satisfy the condition of being a complete machinery used for production, and the benefit of the notification was not available. The appeal of the Revenue succeeded.

Ratio Decidendi: Exemption under a notification covering machinery used for production is available only when the claimant proves that the item is a complete machinery unit answering the notification description, and not merely a component or spare part.

---