Duty exemption under Notification No. 36/96 applies to listed textile machinery; actual user status cannot defeat entitlement.

Machinery and equipment falling squarely within the specified textile-industry list under Notification No. 36/96 were eligible for duty exemption. The actual user condition was treated as irrelevant because it was not a requirement of the notification, and exemption could not be denied on that basis. The importer was therefore entitled to the benefit of the notification, and the challenge based on non-actual user status was not sustainable.

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Issues: Whether the importer was entitled to duty exemption under Notification No. 36/96 for machinery covered by the specified list, and whether actual user status was relevant for denying the exemption.

Analysis: Notification No. 36/96 granted exemption from duty to machinery and equipment specified in the relevant list for the textile industry. The imported machinery was found to be included in that list. The actual user condition was held to be irrelevant for deciding entitlement under the notification, and the impugned order itself had proceeded on the footing that the charge based on non-actual user status was not sustainable.

Conclusion: The importer was entitled to the benefit of duty exemption under Notification No. 36/96, and denial of exemption on the ground of non-actual user was not justified.

Ratio Decidendi: Where imported goods squarely fall within the description covered by an exemption notification, entitlement cannot be denied on an irrelevant condition not required by the notification.

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