2018 (9) TMI 1345

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.... the revenue's appeal can be disposed of in the absence of the respondent and as such after rejecting the request for adjournment, we proceed to decide the appeal itself. 2. As per facts on record the appellants are engaged in the manufacture of Sewing machines, which were entitled to exemption from payment of duty in terms of Notification No.6/2002 dated 01.03.2002. 3. Revenue by entertaining a view that the appellant was actually manufacturing Embroidery Machines and were misdiclaring the same as Sewing Machines and were wrongly availing the benefit of exemption notification, searched the factory premises of the assessee on 22.11.2007. It was found that the appellant was engaged in the manufacture of "design master" machine for the M/s ....

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....e embroidery effects. The machines designed to do embroidery work alone will fall under heading 84.47. It may be noted that the HSN Explanatory Notes while elaborating on Embroidery machine, it has been categorically stated that the machine designed to do embroidery work only will fall in tariff heading 84.47. The use of the term 'only' is very important, and by applying the above explanation to the facts of the case, it is quite clear that the impugned machine is not designed to do embroidery work only. Thus the explanation given in HSN notes under tariff heading 84.47 clearly takes the impugned machine out of preview of chapter heading 84.47, since it has been established that the machine in question has the capability of performing strai....