Electric motors used in fan components count toward the exemption ceiling where the tariff covers motors of all kinds.

Electric motors manufactured for use as component parts in electric fans were held to fall within the tariff entry covering electric motors of all kinds, so their output had to be counted for the ceiling under Notification No. 68/60. The appellants did not establish that the starters and rotors used in fan manufacture were outside that description. The earlier exemption for captively used components in fan manufacture under Notification No. 28/69 was not in dispute; the operative question was only whether such motors were includible in the unit's total output for the clearance ceiling. On that basis, the motors were correctly taken into account and the exemption was unavailable.

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Issues: Whether electric motors assembled as component parts in the manufacture of electric fans were liable to be counted for determining the ceiling under Notification No. 68/60 dated 28-4-1960, so as to deny the exemption for clearances for home consumption.

Analysis: The appellants failed to substantiate that the starters and rotors used in the manufacture of fans were not electric motors. The relevant tariff item was held to cover electric motors of all kinds, not merely conventional motors. The earlier exemption under Notification No. 28/69 dated 1-3-1969 for captively used components in fan manufacture was not in dispute; the question was only whether the output of such motors had to be included for the ceiling under Notification No. 68/60. The authorities correctly treated the motors used as fan components as part of the unit's total output.

Conclusion: The electric motors used as component parts of fans were rightly taken into account for the ceiling under Notification No. 68/60, and the exemption was not available to the appellants.

Ratio Decidendi: Where a tariff entry covers electric motors of all kinds, motors manufactured for use as component parts in electric fans are includible in the assessee's total output for the purpose of a ceiling-based exemption notification.

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