COMMISSIONER OF CUSTOMS Vs. ANUSAM KNITTERS (P) LTD.

JUDGEMENT

(1.) This appeal by revenue is directed against Order -in -Appeal No. C. Cus. 507/2002 dated 31.10.2002 by which the ld. Commissioner of Customs (Appeals), Chennai has allowed the appeal filed by the appellant by granting exemption to circular knitting machines in terms of amended Notification No. 29/97 as these machines are indeed required for the manufacture of textile garments.

(2.) The revenue has come in appeal on the ground that as per various letters and circulars issued by the Board, the circular knitting machine is a fabric processing machine which does not find use in making readymade garments like sewing machines, cutting machines, button hole sewing machine, button stitch sewing machine, collar turning and blocking machine, cuff turning and blocking machine, pocket creasing machine, ironing machine, shirt folding machine, etc. Therefore circular knitting machine being a fabric making machine is not required for manufacture of garments and is not eligible for the exemption of countervailing duty under Customs Notification No. 29/97. Revenue has further submitted that the circular knitting machine is required for the manufacture of unprocessed knitted fabrics by which garments cannot be manufactured unless such unprocessed fabrics is treated or processed by various other machines like bleaching, washing, being, compacting, calendaring, shrinkage, removing, etc. These processes are not invariably done by one person and fabrics manufacturing being very complicated and cumbersome task which includes various processes and the manufacture of garments starts only thereafter in which circular knitting machine does not have any role to play. They have also cited certain judgments of the Tribunal

(3.) Appearing on behalf of the revenue, DR Shri C. Mani reiterates the grounds of appeal.