TaxTMI 
TaxTMI 
2016 (9) TMI 938
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.... He also ordered recovery of interest as well as penalty equal to the amount of duty confirmed. Further he also ordered confiscation of the goods seized totally valued at about Rs. 10 Lacs with an option to redeem the goods on payment of redemption fine. The order in original in this case was passed by the Addition Commissioner dated 21st of December 2006. 2. The appellant is engaged in trading of various models of Singer brand imported sewing machines falling under subheading 8452.19 of the Central Excise Tariff Act, 1985. The dispute covers period 2002 -03 to 2004 - 05. During this period the appellant imported Singer brand machines with model number MARS 5810. At the time of import they availed exemption from payment....
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....out fitting an electric motor into the slot provided for it. By fitting an electric motor to such incomplete machine, it brings into existence the complete sewing machine which has been considered to be manufactured in terms of section 2 (f) and section note 6 of Section XVI of the Central Excise Tariff Act 1985. 3. In the present appeal the appellant has challenged the view that fitting motors into imported sewing machine does not amount to manufacture. They have further submitted that the machine imported without the motor is not incomplete or semi-finished, but is a complete machine. The fitment of the motor has not changed the essential character or name or use of the sewing machine. The section note 06, to section XVI, based o....
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....the meaning of 2 (f) of the Central Excise Act 1944 read with section note 6 to section XVI of the Central Excise Tariff Act. 2. If the process amounts to manufacture, as above, whether the resultant sewing machines are eligible for exemption under serial No. 201 and of notification No. 6/2002 Issue 1 The section 2 (f) of the Central Excise Tariff Act reads as follows:- "manufacture" includes any process, - (i) Incidental or ancillary to the completion of a manufactured product; and (ii) Which is specified in relation to any goods in the Section or Chapter notes of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) as amounting to manufacture; of (iii) W....
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.... approach of the adjudicating authority to be erroneous. Section 2 (f) defines the term manufacture. The meaning of the term has been the subject matter of ever so many decisions right upto the Apex Court. In the landmark decision of the Hon'ble Supreme Court in the Delhi Cloth and General Mills case [1977 (1) ELT J199], the following yardstick has been laid down by the Supreme Court: "Manufacture implies a change, but every change is not manufacture and yet change of an article is the result of treatment, labour and manipulation. But something is necessary and there must be transformation; a new and different article must emerge having a distinctive name and character or use." 7. In the present case what has been imported....