Exemption for electric motors under the 400-volt criterion depends on design and proof, not ISI testing tolerance.

Electric motors marked 380 and 385 volts were considered against Notification No. 82/72-C.E., which granted excise exemption only to motors designed for use in circuits at a pressure exceeding 400 volts. The later amendment in Notification No. 189/77-C.E. changed only the rated capacity requirement and left the voltage condition unchanged. ISI voltage tolerance could not establish that the motors were designed for use above 400 volts because it related to testing, not to the exemption criterion. As no evidence proved satisfaction of the notification condition, the benefit of exemption was denied.

---

---

Issues: Whether electric motors marked with 380 and 385 volts were eligible for exemption under Notification No. 82/72-C.E. on the basis that they were designed for use in circuits at a pressure exceeding 400 volts.

Analysis: The exemption notification granted concessional central excise duty only to electric motors designed for use in circuits at a pressure exceeding 400 volts. The subsequent amendment made by Notification No. 189/77-C.E. altered only the rated capacity requirement and did not affect the voltage criterion. The claim based on ISI voltage tolerance was rejected, as the tolerance was meant for testing purposes and did not establish that motors actually marked at 380 and 385 volts were designed for use above 400 volts. No evidence was produced to show that the goods satisfied the notification condition, and the factual findings of the lower authorities remained unshaken.

Conclusion: The exemption was not available to the motors in question and the denial of the benefit was upheld.

---