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2016 (9) TMI 938 - AT - Central ExciseManufacture - Whether the process of fitting electric motors to imported sewing machines amounts to manufacture within 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 and if the process amounts to manufacture, whether the resultant sewing machines are eligible for exemption under serial No. 201 and of notification No. 6/2002 - Held that:- 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 has brought into existence any new article which has a character, name or use which is different from the components which have gone into it. Accordingly, it cannot be said that the addition of motor has brought into existence any new product and consequently no manufacture has taken place and hence, no liability for payment of Central Excise Duty arises in this case. Even if a view is taken that addition of motor results in a complete article liable for payment of excise duty, we find that it will be covered by the exemption given in serial No. 201 of notification 6/2000-CE. The exemption is available to those sewing machines which do not have an inbuilt motor. The concept of what constitutes a sewing machine with inbuilt motor has been examined by the Tribunals in many cases referred to the case of Gabbar Engineering Co. Vs. CCE, Ahmedabad [2009 (8) TMI 255 - CESTAT, AHMEDABAD]. - Decided in favour of appellant
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