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2009 (8) TMI 255 - AT - Central ExciseEligibility for exemption under Notification No. 6/2002 dated 1-3-2002 – Industrial sewing machines other than with in-built motor - Appellants are are engaged in the manufacture of industrial sewing machines and bag closer machines and portable bag closer machines etc. - It is noticed from the brochure produced was that in portable bag closer machines, the motor as well as the pulley and V-belt are not at all visible and they form an integral part of the machine. - Coming to the industrial sewing machines and bag closer machines which are not portable, from the brochure we find that motors are separately fitted and connected to the sewing machine by means shaft, V-belt and pulley. – Held that “non portable bag closure machine” and “industrial sewing machine” having externally connected motors and eligible for exemption – Held that “Portable bag closure machine” not eligible for exemption - In the result except for eligibility of portable bag closer machine for exemption under Notification No. 6/2002 and the liability of crank shafts and waste and scrap to duty, all other issues are decided in favour of the appellants with consequential relief. The matter is remanded back to Original Adjudicating Authority for re-determining eligibility for SSI benefit, quantum of duty liability - Further, in view of the fact that the issue involves classification and different interpretations were possible, we do not find fault with the view taken by the appellants that they were eligible for the exemption and therefore they did not need Central Excise Registration. Therefore, penalty imposed on all the appellants is also to be set aside.
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