Exemption for sewing machine heads without electric motor upheld where goods were not motor-operated on clearance.

Sewing machine heads cleared without any electric motor or electrical control remained eligible for exemption under Notification No. 01/2011-CE, as amended. The exemption entry was applied on the basis that it excludes only sewing machines operated with electric motors, whether built-in or attachable. The relevant test was the condition in which the goods were cleared, and a groove in the fly wheel did not change their character or make them motor-operated. On that footing, the exemption could not be denied and the appellant was entitled to relief for the relevant period.

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Issues: Whether sewing machine heads cleared without any electric motor or electrical control were eligible for exemption under Notification No. 01/2011-CE dated 01.03.2011 as amended by Notification No. 08/2014-CE dated 11.07.2014.

Analysis: The exemption entry covered sewing machines other than those operated with electric motors, whether built-in or attachable to the body. The relevant test was whether the goods were cleared in a condition capable of being operated with an electric motor. The goods in question were sewing machine heads cleared without any electric motor or electrical control, and the existence of a groove in the fly wheel did not alter that position. On that footing, the benefit of the exemption could not be denied.

Conclusion: The appellant was entitled to the exemption for the relevant period.

Final Conclusion: The impugned order was set aside and the appeal was allowed with consequential relief.

Ratio Decidendi: Where the exemption entry excludes only sewing machines operated with electric motors, goods cleared without an electric motor or electrical control remain eligible for the exemption.

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