2017 (7) TMI 974

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....ounsel for the petitioner and Mrs.R.Hemalatha, learned Senior Panel Counsel for the respondent. 2. In these writ petitions, the petitioner has challenged the two Orders-in-Original passed by the respondent dated 22.02.200l. By the impugned orders, the respondent hold that the Circular Knitting Machines imported by the petitioner are only (Knitted) Fabric Making Machines and are not required for....

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.... "8.Further, in our view, this Notification is very clear. The 100% exemption is given to capital goods required for manufacture of, amongst others, textile garments . The term capital goods has been defined in the Notification. The term capital goods means goods which are used in the manufacture of that product and also goods which would be required for manufacture or production of other goods in....

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.... be said that only stitching and knitting machines are required. Apart from stitching and cutting the manufacturer may himself manufacture the yarn of fabric. The quality of the yarn or fabric would have to be tested. Machines would be required for that. Similarly, machines for dyeing and/or drying the fabric or yarn, machines for inspecting the defects etc. would be required. The terms capital go....

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....cates that the 100% exemption is given to a manufacturer of garments. If the import is by a person who is manufacturing textile products then that importer get exemption from payment of custom duty and so much of the additional duty as is in excess of 10% of the value of the goods. The difference in language is only for purposes of emphasizing that the 100% exemption is only to manufacturers of ga....