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TMI Blog2016 (9) TMI 938X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eption was available if sewing machines were imported without any inbuilt motor. The machines imported have a cavity for fitment of an electric motor which can be connected to the treadle through a V-belt. The machines, as imported also have a facility to connect the belt for manual operation of the machine. The imported machines were extended the benefit of notification under serial No. 201 for CVD purposes. The appellant procured indigenously manufactured motors and fitted them into imported machines and sold them to various customers. After investigation to the affairs of the appellant, the Department issued a Show Cause Notice dated 22nd of December 2005, in which it was alleged that fitting of electric motor into the imported sewing ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mplete or unfinished article into a finished article. The imported machine is capable of operation manually in the form in which it is imported. The fitment of the motor has only made the machine operational through an alternate mode. 4. The appellant has further contended that even if the process of fitting of electric motor to the imported sewing machine amounts to manufacture, the same will be eligible for exemption under serial No. 201 Notification No. 6/2002 -CE dated 01/03/2002. Their view is that the entry No. 201 excludes from exception only the sewing machines with inbuilt motors. They have also argued that fixing of motors in the sewing machines will not render the sewing machine as one with an inbuilt motor. To support their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r alteration of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer. The section note 6 to section XVI of the Central Excise Tariff Act 1955 reads as follows: In respect of goods covered by this Section, conversion of an article which is incomplete or unfinished but having the essential character of the complete or finished article (including blank , that is an article, not ready for direct use, having the approximate shape or outline of the finished article or part, and which can only be used, other than in exceptional cases, for completion into the finished article or part), into complete or finished article shall amount to manufacture . 6. The adjudicating a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Serial No. 201 is reproduced is reproduced below:- S. NO. Chapter Heading Description Rate of duty 201. 8452.19 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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