9911796707
TMI Blog2018 (6) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 of N/N. 6/2006-CE dated 1.3.2006. Whether the machines are sewing machines or embroidery machines and the same having merit classification under heading 8452 or 8447 of the Tariff Act? Held that:- As per Note 7 to Chapter 84, a machine is used for more than one purpose is, for the purposes of classification, to be treated as it its principal purpose were its sole purpose - On going through the HSN Explanatory Notes to Chapter heading 8447, the heading does not cover sewing machines capable of doing simple embroidery in addition to ordinary sewing under 8452. Further as per HSN Explanatory Note to heading 84.52 states that the machines designed to do embroidery work only under heading 84.52. Admittedly, in the case in hand, the machine in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .No.201 of Notification No.6/2002-CE dated 1.3.2002 and under Sl.No.15 of Notification NO.6/2006-CE dated 1.3.2006, as applicable during the relevant period. Under these Sl.Nos. sewing machines, other than those of inbuilt motor, falling under CTH 8452 were fully exempt from payment of excise duty. The case of the Revenue is that the embroidery is the primary function of the impugned goods and hence, these goods are classifiable as „embroidery machines‟ under CTH 8447 of the Tariff Act and therefore they are not entitled to exemption by classifying impugned machines under CTH 8452. The Revenue has alleged that the said allegation was made on the basis of statement recorded during the course of investigation. The matter was adjud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for making embroidery. HSN Explanatory notes to 84.52 excludes machines which are designed to do embroidery works only. Therefore, the appeals are to be dismissed. 6. Heard the parties and considered the submissions. 7. Short issue involved in this case is whether the machines are sewing machines or embroidery machines and the same having merit classification under heading 8452 or 8447 of the Tariff Act. For better appreciation, the relevant entries are to be extracted below:- 84.47 8447.00 Knitting machines, stich-bonding Machines and machines for making grimped yarn, tulle, lace, embroidery, trimmings, braid or net and machines for tufting 16% 84.52 Sewing machines, other than book-sewing machines of heading No.84.40; furn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ordinary sewing, can produce purely decorative work (e.g. embroidery effects); however machines designed to do embroidery work only (including drawn thread machines) fall in heading 84.47. Book-sewing machines are classified in heading 84.40 and knitting sewing machines and other stitch-bonding machines in heading 84.47. 11. On going through the HSN Explanatory Notes to Chapter heading 8447, the heading does not cover sewing machines capable of doing simple embroidery in addition to ordinary sewing under 8452. Further as per HSN Explanatory Note to heading 84.52 states that the machines designed to do embroidery work only under heading 84.52. 12. Admittedly, in the case in hand, the machine in question is sewing but they can do ordinary ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
