Concessional customs duty for spinnerets used in synthetic fibre manufacture upheld under the relevant exemption notification.

Spinnerets imported for use in synthetic fibre manufacture were treated as equipment used in the spinning process and, on that basis, were covered by the concessional customs duty entry for machinery or equipment used in manmade or synthetic fibre or yarn industries under Notification No. 21/2002-Cus. The Tribunal applied the notification's coverage of relevant machinery and equipment and the ordinary meaning of spinneret as an instrument for forming continuous manmade filaments. The denial of concessional duty was therefore unsustainable, and the imports were held eligible for the notification benefit.

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Issues: Whether spinnerets imported for use in synthetic fibre manufacture were eligible for concessional customs duty under Notification No. 21/2002-Cus.

Analysis: The notification granted concessional duty to machinery or equipment for use in manmade or synthetic fibre or yarn industries, including items falling within the relevant serial entry. The imported spinnerets were held to be equipment used in the spinning process, and the meaning of spinneret supported its treatment as machinery or equipment for forming continuous filaments of manmade fibre. The Tribunal also relied on the principle that items used as part of manufacturing equipment can qualify for the benefit where the notification covers such machinery or equipment.

Conclusion: The spinnerets were eligible for the benefit of Notification No. 21/2002-Cus., and the denial of concessional duty was unsustainable.

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