2006 (8) TMI 219

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the non-resident is interested in setting up a knitting/textile unit in India and for this purpose he is interested in having a joint venture with the applicant who is a resident in India. The proposed unit requires consumption of wool as raw material and therefore they are keen in taking the benefit of Customs Notification Nos. 38/96 and 63/94 for importing duty free wool from China from Gunji in Pithoragarh, Uttaranchal or Village Namgaya Shipkila in Kinnaur District of H.P. The unit will be set up in Baddi, H.P. or in Haryana with an estimated investment of US $ 2 millions in machinery. In Annexure-II to the application, the applicant has submitted that import of wool is allowed under OGL (Open General Licence). By Notification No. 63....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....g/textile unit. In support of his submission, the Commissioner has referred to para 2.13 of the Foreign Trade Policy, 2004-09, ITC Public Notice No. 33/92-97, dated 17-7-92 and ITC Public Notice No. 5/92-97(PN), dated 20-7-92 regulating the border trade across Indo-China border, Office Memorandum F.No. 2/9/2005-FT (NEA), dated 2-5-2005 clarifying that as per the MOU signed with China, the border trade is meant only for local residents of border on both the sides and permitting the import and export of identified items, Board's letter F.No. 554/02/2005-L.C., dated 12-8-2005 clarifying that India's trade with China has been allowed as border trade and is meant only for Tribal communities living on either side of the border. It has therefore b....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... submissions of the Commissioner. 5. On a plain reading of the exemption Notification No. 38/96, it is clear that this has been issued by the Central Government in exercise of the powers granted to it under Section 25(1) of the Customs Act, 1962, exempting the goods specified in column (3) of the Table annexed to the Notification and falling within the First Schedule or the Second Schedule, as the case may be, of the Customs Tariff Act, 1975, from the whole of the duty of customs leviable thereon under the said Customs Tariff Act, which is specified in the corresponding entry in column (3) of the said Table. The relevant entry under the heading "description of goods" given in column (2) of the Table to which the applicant has made a refe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s Act if it is satisfied that it is necessary in the public interest so to do. Such exemption is in respect of the goods of any specified description and can either be absolute or subject to such conditions (to be fulfilled before or after clearance) as may be specified in the notification. The exemption can be from the whole or any part of duty of customs leviable thereon. Therefore, exemption notifications are to be interpreted and given effect to only by (i) the exact identity of the goods specified in the notification, (ii) condition(s), if any, given in the notification which is/are to be fulfilled before or after clearance as may be specified in the notification, and (iii) the extent of exemption of duty which is also specified in the....