TaxTMI 
TaxTMI 
2022 (6) TMI 625
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....Dipping Machine 2 8479.89 11/97 Automatic Welding Machine 1 Under Merit Automatic UV Printing Machine 1 2.2 The benefit of Notification No. 11/97 is applicable only to machines which are capable of producing a commodity. After perusing the documents revenue was of the view that for production of the Electronic Plastic Film capacitor a lot many machines are required. In the Instant consignment, It was found that some of the key machines were not imported like Coil Winding Machine, Heat Press, Curing Drier therefore the benefit of exemption claimed was denied, vide Order-in-Original No. S/26-717/1998 VA dated 29.05.1998 by relying upon CESTAT decision in the case of M/s. Lakhanpal Industries Ltd. (1997 (90) ELT 307 (Tri.)). 2.3 Appellant preferred an appeal before Commissioner of Customs (Appeals), who vide his Order-in-Appeal No. 532/1999 MCH dated 31.08.1999 upheld the Order-in-Original. 2.4 Appellant preferred Appeal before CESTAT. CESTAT Order No. A/508/WZB/05 - C.IV (CSTB) dated 17.11.2005 in Appeal No. C/41/2000 - Mum remanded the matter to the original authority stating as follows: "Heard both sides. The lower authorities....
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.... the final commodity into existence. Various other machines are required for manufacturing the final product. Thus, even by the appellants own contention, these three machines by themselves do not produce the commodity viz. "Capacitors". Hence the denial of the benefit of the said notification by the lower authority is fully justified. 9. On the other hand issue before Hon'ble Supreme Court of United Electrical Inductive Ltd. was with respect to claim under Notification No.118/80, Sr. No.58, description of goods which are "Automatic Lead Machine, Lacquering, Testing, Colour watering, sorting and packing machines for resistance" and in that context question before Tribunal and Supreme Court was that whether only a single machine capable on all the functions enumerated in the notification should be granted the benefit or even a set of individual machine doing all the jobs enlisted in the said notification will get benefit. The Supreme Court upheld the Tribunal's view that the said entry could include a set of machines capable of performing the enumerated functions because no single machine could do so. It was found that the description of goods under column 3 of the N....
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....p; From the facts as brought out in the impugned order, there is no dispute that these three machines are used in process of production of the finished products namely "Electronic Plastic Film Capacitor" and these three machines were imported to augment the existing production capacity of the appellant at various stage to streamline the production process. 4.5 In case of Exide Industries Ltd [2009 (233) E.L.T. 522 (Tri.- Mumbai)] following the earlier order in case Panacea Biotec Ltd [2004 (170) E.L.T. 21 (Tribunal)] tribunal has held as follows: "7. We find that the claim of the Revenue is that the machine is used for wrapping of the positive and negative plate, which is further used in manufacture of battery, are not commodity. We find that this proposition would be incorrect, as the said positive and negative plates, of battery are an intermediate product and they are commodity, as they can be used for replacement of the positive or negative plates, as the case may be. If that be so, the ratio of the decision of the Tribunal in the case of Panacea Biotec Ltd. (supra) squarely covers the issue in favour of the appellant. We may read the same :- "We have heard both the ....
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....e machine imported by them is meant for production of vaccine which itself is a commodity. Consequently, the impugned order cannot be sustained and is set aside." 8. Accordingly, we find that the issue is squarely covered in favour of the appellant. As such, the impugned order to the extent it denies the benefit of Notification No. 17/2001-Cus. to the goods imported is set aside and the appeal is disposed off accordingly." 4.5 The phrase "Machinery used for the production of a commodity." used in Notification No 153/86-Cus., dated 1-3- 1986, was considered by the tribunal in case of Lakhanpal National Ltd [1997 (90) E.L.T. 307 (Tribunal)], holding as follows: "8. On going through the above finding of the Tribunal, it is clear that the Tribunal has categorically held that the machine should produce a commodity for considering it as a `machine for production of the commodity'. Therefore, the submissions made by the learned Advocate that all machineries means set of machines working conjointly to produce the commodity does not merit consideration. If such an interpretation is placed then all plants with series of machineries would get exempted. If the interpretation as plac....
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....notification of exemption which qualifies machine only. It was held that before exemption could be claimed, it is to be proved that the accessory is included within the notification and the burden is on the assessee to prove it to be included within the word `machine'. This case would render no help to the revenue to the question raised in the present case. In the present case, the question for consideration is, whether the entry 58 of the notification using word `Machine' in singular not plural viz. `Machines', could it include other machines referred in the same notification for granting exemption or it qualifies only one composite machine for resistor to give benefit under it? 7. We find the Tribunal gave good reasons for rejecting the interpretation given by the department. Having considered the submissions for the parties we find in case interpretation given by the department is to be accepted, no assessee could get exemption unless all the machines are imported as one composite machine reference of each separate machines with (') would have no meaning. This will make this notification unworkable, hence Tribunal rightly rejected Revenue interpretation. The notification....
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.... produced of advantage to mankind as per the dictionary meaning and cannot be restricted to only 'Excisable Goods' under Central Excise Act, 1944. (e) Appellants have supplied their goods to M/s. Bajaj Auto Ltd. for carrying on Nickel, Chrome and Iron plating of various components. The Tribunal in the case of M/s. Bajaj Auto Ltd., 1995 (80) E.L.T. 644 had held the process so employed by Bajaj Auto Ltd. to be a process of manufacture. That view has been upheld by the S.C. 1994 (70) E.L.T. A156 (S.C.). The differentiation arrived and canvassed that the process in case of Bajaj Auto Ltd. were initiated and ancillary, cannot be upheld. That does not enthuses us to deny the benefit to the exemption in the present case. Following Gujarat High Court decision in the case of Industrial Machinery Manufacture (P) Ltd. - (1965) 165 TC 380 wherein the Division Bench had rejected the contention that machinery must be something that are meant for the actual process of manufacturing of goods and also Modison Metal Refiners - 1996 (88) E.L.T. 292 (Tri) wherein electroplating process was considered to be manufacture, would lead to granting of the eligibility, the entities herein to Notificat....
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....the serial counter number and identification mark of the manufacturer, etc. After this, the film is sent to the spooling machine to cap the second end cap on to the cassette after inserting the spooled film into the cassette. Thereafter, the film, i.e., the roll of film, becomes ready for being sent to the market. As the film will be marketable only when it is capped into cassettes and packed for ready use in a camera, all the processes carried out on the film from the stage of Jumbo Roll Film till it reaches the stage where it is marketable and made acceptable to the consumer, the process of production continues in a series of processes. Since Signing Machine performs a very important part of the production of the film, namely, DX coding, which is required for identifying the speed of the film and for making it more user friendly and marketable, there cannot be any doubt about Signing Machine not being a machine used in the production of films and, therefore, eligible for the concessional rate of duty under Notification No. 59/87-Cus. 6. We have considered the submissions and have gone through the records and have also perused the case law. There is no dispute on the quest....
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....s the surface of the component. Thereafter, these components are cleaned in a water tank at normal temperature etc." The classification under Chapter Heading 84.59 is not in dispute. The dispute is only whether it should go under 84.59(1) or 84.59(2). The CCN Compendium of Classification opinions clearly classifies the machine under 84.59, opinion is extracted :- "Ultrasonic apparatus: for cleaning metal parts and miscellaneous other articles; consisting when complete (whether mounted in a common housing or as separate units) of a high frequency generator, one or several transducers and a tank for the articles to be cleaned, imported either complete without the tank." The Heading 84.59(1) is a residuary item and 84.59(2) is for machines and mechanical appliances designed for the production of a commodity, machinery for treating metals etc. The various examples of machinery used in various industries as given in the CCCN Explanatory Notes under Heading 84.59 indicates that such machines like purifying oil, washing, scouring and removing dust in the perspective fields are stated as for use in the production of commodities. The process of cleaning and washing of the parts to rem....
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....tity in the animal kingdom is already produced in the form of seedlings which have been purchased by the assesses and these are the ones which are introduced by them in their Acquafarm. What gets grown in the Acquafarm are these seedlings. These seedlings get nourished to their full size and thereafter these are harvested. While these seedlings can also be called prawns in the form these are obtained, these on growing to the full size are still known as prawns. From the trading point of view, these are two different things. Seedlings are not edible item; which is bought and sold for its nourishment value in the normal course of trade and it is the full grown prawns which are brought as prawns and which is accepted as an edible item. Prawns acquire value in the trade only by reason of these being in grown size which can be brought to the market for edible purposes. Seedlings in that sense therefore cannot be taken to be an edible commodity. We observe that the term "commodity" as defined above can cover items like full grown prawns because there emerges as an article of trade. In this background it can be said that a commodity has been produced in the Acquafarm. We observe that praw....