Exemption for machinery used in production upheld where notification covered a separate production-use category beyond listed sub-headings.

Machinery classifiable under sub-heading 8479.82 was held eligible for exemption under Notification No. 59/87 because the notification's entry extended not only to specified sub-headings but also separately to machinery used for the production of a commodity. The absence of an express reference to sub-heading 8479.82 did not defeat exemption where the equipment, on the manufacturing process recorded in the order-in-appeal, was used in the production process and served production of the commodity. On that basis, the exemption claim was accepted and the Revenue's challenge failed.

---

---

Issues: Whether machinery classifiable under sub-heading 8479.82 was entitled to exemption under Notification No. 59/87 on the ground that it was machinery used for the production of a commodity.

Analysis: The relevant entry in Sl. No. 50 of Notification No. 59/87 covered specified sub-headings and also independently extended to machinery used for the production of a commodity. The absence of an express mention of sub-heading 8479.82 did not by itself exclude the goods, because the latter part of the entry constituted a separate exempted category. On the manufacturing process recorded in the order-in-appeal, the agitator system was found to be used in the production process and to serve the production of the commodity.

Conclusion: The machinery was held eligible for exemption under Notification No. 59/87, and the Revenue's challenge failed.

---