2009 (2) TMI 602 - AT - Central Excise

Summary

The appellate tribunal CESTAT, Ahmedabad, consisting of Shri B.S.V. Murthy and Ms. Archana Wadhwa, JJ., heard the case where the appellants, engaged in manufacturing industrial sewing machines, had not taken registration or paid duty under the belief they were eligible for exemption under Notification No. 6/2002. Total duty of over 2.8 Crores was demanded on sewing machines, crank shafts, and waste scraps, with imposed penalties. The appellants argued that their machines did not have an inbuilt motor, citing evidence from the Order in Original and a Ministry reply. The tribunal considered the arguments and Ministry reply, finding the issue arguable and allowing a stay during the appeal process. The case highlights the interpretation of the inbuilt motor condition for exemption under Notification No. 6/2002.