Sewing machine classification prevails where equipment also performs only simple embroidery effects, preserving exemption eligibility.

Machines that perform ordinary sewing and stitching, while also producing only simple decorative embroidery effects, are treated as sewing machines rather than embroidery machines. The HSN Explanatory Notes distinguish machines designed exclusively for embroidery from sewing machines that can also create embroidery effects; on that basis, heading 84.47 applies only to machines made for embroidery work alone. Because the record did not show that the goods were exclusive embroidery machines, they were classified under heading 84.52 and the exemption under Notification No. 6/2002 was available.

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Issues: Whether the machines manufactured by the assessee were classifiable as embroidery machines under heading 84.47 or as sewing machines under heading 84.52, and whether the assessee was entitled to the exemption under Notification No. 6/2002 dated 01.03.2002.

Analysis: The machines were found to perform sewing and stitching functions as well as simple embroidery effects. The HSN Explanatory Notes draw a distinction between machines designed to do embroidery only and sewing machines that can also produce decorative embroidery effects. On that basis, machines capable of ordinary sewing in addition to embroidery do not fall under heading 84.47, which is confined to machines designed to do embroidery work only. The record also showed that the department had not established that the impugned machines were exclusive embroidery machines. The appellate authority therefore correctly treated them as sewing machines classifiable under heading 84.52 and entitled to the exemption.

Conclusion: The classification under heading 84.47 was rejected and the assessee's classification under heading 84.52 with exemption benefit was upheld.

Final Conclusion: The revenue failed to dislodge the finding that the goods were sewing machines rather than exclusive embroidery machines, so the appeal was dismissed and the assessee retained the exemption benefit.

Ratio Decidendi: A machine capable of ordinary sewing and only simple embroidery effects is classifiable as a sewing machine, not as an embroidery machine, and cannot be denied exemption on the footing that it is designed for embroidery only.

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