Broad meaning of production under an exemption notification covers electroplating machinery used in creating marketable commodities.

An exemption notification for machinery used in the production of a commodity was interpreted broadly, with "production" treated as wider than "manufacture". Electroplating and electro-machining machinery under Heading 85.43 was found to be essential in intermediate processes that bring about a changed or marketable commodity meeting required specifications. On that basis, the Tribunal accepted that such machinery fell within the notification's scope and that a narrow reading would defeat the entry's effect for machinery of this class. The exemption was therefore held applicable, and the denial of exemption was set aside.

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Issues: Whether electroplating machinery falling under Heading 85.43 was eligible for exemption under Notification No. 56/95 as machinery used for the production of a commodity.

Analysis: The exemption was held to turn on the expression "production of a commodity" and not on a restricted notion of manufacture. The Tribunal distinguished the earlier view that electroplating merely improved an existing article, and accepted the appellants' technical material showing that the machines were essential for bringing about a changed or different commodity in several industrial applications. On the evidence, electroplating and electro-machining were treated as processes integral to producing marketable commodities with the required specifications. The wider meaning of production was applied, and the exemption was not read in a manner that would make the entry ineffective for machines classifiable under Heading 85.43.

Conclusion: The machinery was held to be covered by the notification, and the denial of exemption was set aside.

Ratio Decidendi: Where an exemption notification covers machinery used for the production of a commodity, the expression "production" is broader than "manufacture" and extends to machinery employed in an intermediate process that brings about a changed or marketable commodity.

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