BRITE GARMENTS Vs. DY COMMISSIONER OF CUSTOMS (EPCG), OFFICE OF COMMISSIONER OF CUSTOMS, CUSTOMS HOUSE CHENNAI

JUDGEMENT

(1.) Heard Mr.S.Raveekumar, learned counsel for the petitioner and Mrs.R.Hemalatha, learned Senior Panel Counsel for the respondent.

(2.) In these writ petitions, the petitioner has challenged the two Orders-in-Original passed by the respondent dated 22.02.2001. By the impugned orders, the respondent hold that the Circular Knitting Machines imported by the petitioner are only (Knitted) Fabric Making Machines and are not required for manufacture of Garments, as they are not capable of producing/manufacturing any Garment and the end product manufactured out of the imported Circular Knitting Machines is only an Unprocessed Knitted Fabric. Accordingly, the respondent denied the benefit of exemption from basic Customs Duty and for levy of tax at 10% counter veiling duty.

(3.) The legal issue involved in these writ petitions are squarely covered by the decision of the Hon'ble Supreme Court in the case of Commissioner of Customs, Kolkata Vs. Rupa And Co. Ltd., 2004 170 ELT 129 (SC) wherein the Hon'ble Supreme Court while considering the similar facts with regard to the textile machinery imported under EPCG scheme defined what would be meant by the term capital goods and it was pointed out that