Exemption for nylon mesh lining material accepted where end-use evidence showed use in leather garment manufacture.

Imported nylon mesh lining material was held to fall within the exempting entry in Sl. No. 168 of Notification No. 21/2002. The notification distinguished nylon mesh from lining and interlining materials, but the laboratory clarification showed that the goods could be used as inner-lining material for leather garments depending on buyer requirements. The claimant's status as a manufacturer-exporter, together with the end-use certificate and supporting test reports, established actual use in leather garment manufacture. On those facts, the exemption claim could not be rejected and the benefit was accepted.

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Issues: Whether the imported nylon mesh lining material was eligible for exemption under Sl. No. 168 of Notification No. 21/2002 dated 01-03-2002, and whether the claimant's status as a manufacturer-exporter and the supporting test reports and certificates entitled it to the claimed benefit.

Analysis: The imported goods were described as nylon mesh lining material. The notification distinguished between nylon mesh under one entry and lining and interlining materials under another. The initial laboratory view was later clarified to the effect that the goods, though generally not used as lining material for leather goods, could sometimes be used as inner-lining material for leather garments depending upon buyer requirements. The claimant was also shown to be an actual user, being a manufacturer-exporter of leather garments, and an end-use certificate supported use of the goods only in the manufacture of leather garments. In these circumstances, the claim that the goods fell within the exempting entry could not be rejected.

Conclusion: The exemption claim under Sl. No. 168 of Notification No. 21/2002 dated 01-03-2002 was accepted and the appeal succeeded.

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