TaxTMI 
TaxTMI 
TaxTMI 
2016 (9) TMI 938
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....ell 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 of CVD under serial No. 201 of notification....
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....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 on which revenue has formed the view of manufac....
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.... 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) Which, in relation to the goods specified in the Third Schedule, involves packing or repacking of such goods in a unit container or label....
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.... 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 is sewing machine even though the motor has not been fitted. After fitment of the motor it remains sewing machine. It cannot be said that the addition of motor ....