CC Vs. S.P. APPARELS

JUDGEMENT

(1.) THIS appeal by the Revenue is directed against the Order -in -appeal No. C.Cus. 509/02 dt. 31.10.2002, by which the appellate authority has set aside the order of the lower adjudicating authority and allowed the appeal by the appellants by applying the ratio of the judgments rendered by East Zonal Bench, Calcutta, in the case of Rupa and Co. Ltd. v. CC, Kolkata . Aggrieved by this order the appellant revenue has come in appeal on the following grounds:

(2.) HEARD Ld. DR Shri C. Mani, who has reiterated the grounds of the appeal.

(3.) APPEARING on behalf of the respondent Shri S. Kandaswamy, Consultant, argued that the issue is no longer res integra and had been decided by this Bench in the case of Premina Exports v. CC, Chennai reported in 2002 (148) ELT 1065 (Tri. -Chen.) : 2002 (105) ECR 841 (T), wherein it has been held that under EPCG policy Machinery which are required for textile garments manufacturing would be entitled to benefit exemption of additional duty granted under Notification No. 29/97 -Cus. and goods required for textile garments manufacturing would include machineries for knitting, winding, compacting and dyeing of fabrics as these processes are essential for manufacturing of knitted garments. The argument of the revenue is that these processes are independent of production of garments wherein these machines have to be used directly, cannot be accepted and should be rejected and the exemption of additional duty has to be granted under Notification No. 29/97 -Cus. dt. 1.4.1997. Ld. Consultant has also invited our attention on the judgment rendered by the EZB, Kolkata, in the matter of Rupa and Co. Ltd. reported in 2002 (143) ELT 562 (Tri. Kolkata), which judgment has held that the respondent/assessee is entitled to benefit of exemption under Notification No. 29/97 -Cus. dt. 1.4.1997 and these judgments in the matter of Rupa and Co. Ltd. (supra) has been relied on by this Bench in the case of Premina Exports (supra). Ltd. Commissioner (Appeals) has also relied on the judgment rendered in the case of Rupa and Co. Ltd. (supra) as well as the judgment rendered by us in the case of Premina Exports vide Final Order No. 1043 -1067/2002 dt. 17.9.2002.