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TMI Blog2000 (1) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... hout observing Central Excise formalities such as filing of classification list or price lists. Trolleys and carts had been used in the factory, for transportation of semi-finished and finished goods produced by the assessees. 2. According to the provisions of Notification 118/75-C.E., dated 30-7-1975, exemption from the whole of the duty of excise on TI 68 goods meant for use in the factory is not available to complete machinery manufactured and meant for producing/processing of goods in the factory. Since the department was of the view that trolleys and carts were not complete machinery meant for use in the factory of production of nylon yarn and hence liable to duty at the rate of 12% ad valorem with effect from 17-3-1985, a show cause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s without which sugar cannot be manufactured. The Tribunal therefore, extended the benefit of exemption under Notification 118/75-C.E. to vacuum pans falling under TI 68 captively consumed. The ratio of the above decision is squarely applicable in the present case wherein trolleys and carts used for transportation of materials within the factory of the respondents, can by no stretch of imagination, be considered as complete machinery. Therefore, we agree with the finding of the Addl. Collector that trolleys and carts falling under TI 68 are not complete items of machinery and hence the respondents are entitled to exemption in terms of Notification 118/75-C.E. Accordingly, we uphold the impugned order and reject the appeal of the Revenue. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h will then be rendered redundant or infructuous. The items with which we are concerned, trolleys and carts are complete items by themselves. They are not incomplete in any manner and can be used by themselves independent of other machine(s) or machinery. Therefore, to say that they are not complete items does not appear to be very correct. 7. On course, one question may arise whether these are machines and from a common man's point of view, they may not appear to be so since they are in the nature of vehicles. However, in the definition of machines given in the Chambers 20th Dictionary, machinery means machines in general and machines includes vehicles and it is in this sense that these are required to be considered as machines for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as Third Member reads thus :- Whether trolleys and carts used in the factory of production for transportation of semi-finished/finished goods can be considered as complete machinery' by themselves and therefore, the matter is required to be referred to a Larger Bench or whether they were not hit by the exclusion clause in Notification No. 118/75 and therefore, there was no need to refer to a Larger Bench. 9. In the Revenue's appeal before the Bench which heard the matter, the question arose as to whether trolleys and carts [falling under Item 68 of the First Schedule to the Central Excises Salt Act, 1944, hereinafter referred to as the Old Tariff] manufactured by the respondents in their factory of nylon filament yarn and used for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal's decision in the case of South India Sugar Limited (supra). In that case, the question was whether vacuum pan fabricated and installed by the assessee (manufacturer of sugar) in their factory for captive use was "complete machinery" attracting the exclusion clause of Notification No.118/75 ibid. The Tribunal discussed the question in para 12 of its order thus :- 12. The question, therefore, is whether vacuum pans constitute complete machinery. Vacuum pans are meant for a particular operation in the process of manufacture of sugar. The words complete machinery has not been defined in the notification. The term 'machinery' has also not been defined in the technical dictionary. However, machine is defined in the McGraw Hill Dict ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tute complete machinery. I find that the issue involved in the present appeal is quite analoguous to the one considered in the above case of South India Sugar Limited and therefore the ratio of the Tribunal's decision in that case is squarely applicable to the instant case as rightly held by the learned Member (Judicial). Accordingly, I hold that the trolleys and carts in question are not complete machinery within the meaning of this expression in the second proviso to Notification No. 118/75 ibid. No division of the Tribunal in any other case holding a contrary view on identical or analoguous issue has been brought to my notice. Hence, any reference to Larger Bench is not called for at this stage. The point of difference stands answe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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