Garment-manufacturing machinery exemption extends to circular knitting machines used in the integrated production process.

An exemption notification for garment-manufacturing machinery was interpreted to cover machines used in the integrated manufacturing process, including knitting machinery. The imported circular knitting machine was found to be required for garment production and therefore within the scope of the exemption from additional customs duty under Notification No. 29/97 dated 01.04.1997. On that basis, the exemption was upheld and the Revenue's challenge failed, sustaining the appellate order granting relief.

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Issues: Whether the imported circular knitting machine was entitled to exemption from the additional duty of customs under Notification No. 29/97 dated 01.04.1997.

Analysis: The exemption notification was construed in the light of the Supreme Court's ruling that the benefit extends to all machines required for the ultimate manufacture of garments, including knitting machinery. The imported machine being used in the garment manufacturing process fell within the scope of the notification.

Conclusion: The exemption was available to the imported circular knitting machine and the Revenue's challenge failed.

Final Conclusion: The appellate order granting exemption was sustained and the Revenue appeal was rejected.

Ratio Decidendi: Where an exemption notification for garment-manufacturing machinery is intended to cover machines used in the integrated process of manufacture, the benefit extends to the imported machine if it is required for that process.

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