CC Vs. COATS VIYELLA INDIA LTD.

JUDGEMENT

(1.) Revenue is aggrieved with the order passed by the Commissioner (Appeals) in Order -in -Appeal No. 03/177/94 dated 26.12.1994.

(2.) The respondent -importer had got clearance of Embroidery Threads for home consumption under OGL based on clarification issued by the licencing authority vide REP Circular No. 57/77 dated 6.10.1977 defining the scope of the item "made up" items. The Dy. Commissioner had observed in the order -in -original that embroidery thread came in packing capable of retail sales and hence they are only consumer goods. It was stated by the importer that the definition of "made ups" even in the year 1977 was issued with specific reference to the registered exporters policy for certain products groups of 1977 policy and would not be relevant to the interpretation of the currenty policy. They referred to Part 1IA listing out consumer goods in 1992 -1997 policy.

(3.) The Commissioner nothing this point held that the Policy recognises that "made -up" even though they may be regarded as consumer goods can be imported under OGL. He noted that the issue is not one of whether the embroidery thread which has come in retail packing is a consumer item. He noted that so long as the term 'made ups' covers embroidery thread, the embroidery thread can be imported under OGL. He noted that the application of embroidery thread is not relevant and that the Dy. Commissioner had gone into the question that the embroidery thread which has come in retail packing is not for industrial use and therefore they have to be regarded as consumer goods. The Commissioner noted that the policy itself recognises that the made up items are consumer goods and even then they may be allowed under OGL. He has also noted about the clarification issued by the licencing authority and accepted the plea of the importer that the embroidery thread is made up article as clarified by the Export Commissioner vide his REP Circular No. 15/77 dated 6.10.1977 and held that the same can be imported without a licence in terms of Import and Export Policy for the year 1992 -1997. He also noted that embroidery threads are considered to be non -fabric made up articles and they were earlier permitted import without a licence as made up items in the light of the clarification cited above.