Garment-manufacturing exemption applies to dyeing and calendering machines used at any stage of production.

Fabric-dyeing and calendering machines imported for use in garment manufacture were treated as eligible for exemption from countervailing duty under Notification No. 29/97-Cus., as amended. Earlier Tribunal rulings had held that machinery used at any stage of the garment-manufacturing process qualifies for the exemption, and dyeing and calendering were recognised as such stages. The imported machines were admittedly used for those purposes, so the Tribunal followed its prior decisions and declined to depart merely because departmental appeals were pending without any stay of operation. The exemption was therefore available, and the Revenue's challenge failed.

---

---

Issues: Whether fabric-dyeing and calendering machines imported for use in garment manufacture were eligible for exemption from countervailing duty under Notification No. 29/97-Cus. as amended.

Analysis: The issue was covered by earlier Tribunal decisions holding that machines used at any stage of the garment-manufacturing process qualify for the exemption. Dyeing and calendering were recognised as stages in that process, and the imported machines were admittedly used for those purposes. The Tribunal therefore followed its earlier rulings and found no reason to differ merely because departmental appeals against those rulings were pending without any stay of operation.

Conclusion: The imported machines were eligible for the exemption, and the Revenue's challenge failed.

---