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2022 (6) TMI 625 - AT - CustomsBenefit of exemption - scope of the term 'Machinery used for the production of a commodity' - denial of benefit on the ground that some of the key machines like Coil Winding Machine, Heat Press, Curing Drier, were not imported - Benefit of N/N. 11/97-Cus at Sr No 143 - HELD THAT:- 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. 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 LIMITED VERSUS COLLECTOR OF CUSTOMS, BOMBAY [1996 (11) TMI 146 - CEGAT, NEW DELHI] where it was held that 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 placed by the learned Advocate is accepted then in circumstances, where a factory carries out a single process alone with a individual single machinery would get exempted. Such interpretation would create chaos and unintended benefit would flow to all factories, when the legislature has not intended to grant the benefit to machines carrying out an individual function alone without production of a commodity. In the case of COMMISSIONER OF CENTRAL EXCISE, MADRAS VERSUS KARUNA ACQUA FARMS [1997 (8) TMI 304 - CEGAT, MADRAS] it was held that the learned CCE(A) has rightly allowed the benefit of the Notifications to the appellants. Appeal allowed - decided in favor of appellant.
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