Footwear embellishment exemption upheld for imported PVC leather cloth intended for use in shoe manufacturing.

PVC leather cloth imported for use in footwear manufacturing was treated as footwear embellishment where the import was supported by an Export Promotion Council certificate and was intended for that specific use. The Supreme Court followed its earlier approach on similar material used in footwear, holding that the fact the goods were supplied in rolls or could also serve other purposes did not disqualify them from the exemption. The Revenue's challenge therefore failed and the exemption under the customs notification was upheld.

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Issues: Whether PVC leather cloth imported for use in footwear manufacturing qualified as an embellishment for footwear and was entitled to the exemption under the notification issued under Section 25 of the Customs Act, 1962.

Analysis: The Tribunal had found that the goods were imported to be used as footwear embellishment, supported by a certificate from the Export Promotion Council, and the Court had already upheld similar reasoning in an earlier matter concerning stamping foil used for footwear. The fact that the material was in rolls or could be used in other fields did not prevent it from answering the description of embellishment for footwear when imported for that specific use.

Conclusion: The PVC leather cloth was eligible for the exemption as embellishment for footwear, and the Revenue's challenge failed.

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