TaxTMI 
TaxTMI 
1997 (3) TMI 182
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....cture of Bare Bottom for the Cells for the manufacture of Caustic Soda in their plant i.e. renovation/repair of the plates. He has upheld the Assistant Collector's order that the activity did not constitute manufacture of machinery falling under Heading No. 84 or 85. The Collector has noted that the Notification No. 58/87-Cus., dated 1-3-1987 as amended, exempts the goods specified in the table annexed, falling within Chapter 72 of the Tariff, when used for the purpose of manufacture of machinery falling under Chapters 84 and 85 of the Customs Act, from the duty in excess of 25% ad valorem, subject to satisfaction of the specified authorities that the goods are to be so used by them and on furnishing of an undertaking of end-use to the sati....
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.... a part or component of the machinery installed therein. Even considering the process it had to undergo to make it functional (such as machining and removal of lamination etc.) it would not still constitute a `machinery' of the categories as defined in Chapter Heading 84 or 85 of the Customs Tariff, but only as a component part. 2. Arguing for the appellants, the learned Advocate submitted that the activity did not amount to repair, but it led to manufacture of machinery having individual function. He submitted that the `bare bottom plates' were manufactured by job workers and the job workers had cleared it under Heading 84.79 with tariff description "Machines and Mechanical appliances having individual functions". He submitted that....
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....or 85. At best, what was manufactured by the job workers was parts of a machinery falling under Chapter 84 and such parts which are specifically designed for use in a machinery falling under Chapter 84 would be classified in that heading as "parts." Therefore, it is his contention that what is manufactured is `parts' and they are not machinery in itself. He submits that activity of repairing is not an activity of manufacture of machinery. He also points out that the Notification had two portions and the production of the certificate certifies only one condition. On the other hand, conditions of the Notification with regard to manufacturing of machinery falling under Chapter 84 had not been satisfied. He points out that even the certificate ....
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.... required for the fabrication of bare bottoms of their Caustic Soda Plant as a replacement of old worn out bottoms." 7. The certificate dated 28-11-1988 issued by the Development Officer also states that the purpose of import of M.S. plates is renovation of old Mercury Electrolytic Cells in their Caustic Soda Plant. The Notification grants exemption to the goods specified in column (2) of the table, "when imported into India for the purpose of manufacture of machinery falling under Chapter 84 or 85 of the said Notification". These terms are requires to be interpreted. Admitted fact is that the items specified in Sl. No. 1. i.e. quantity of steel plates imported were for renovation and repair of bare bottoms and not for the purpose o....