2005(09)LCX0257

In the Customs, Excise & Service Tax Appellate Tribunal Chennai

Shri P.G. Chacko, Member (Judicial) and Shri T.K. Jayaraman, Member (Technical)

Commissioner of Customs, Coimbatore

Versus

Medallion Knitwear (P) Ltd.

Final Order Nos. 1265 & 1266/2005 dt. 13.9.2005 certified on 28.9.2005 in Appeal Nos. C/9 & 10/99/MAS

Advocated By -

Shri B.L. Meena, SDR for Appellant
Shri M.S. Kumaraswamy, Const, for Respondents

Per T.K. Jayaraman:

These appeals filed by the Revenue against Order-in-Appeal Nos. 46 & 47/98 dated 28.9.1998.


2. The respondents imported certain machinery and claimed the benefit of Notification No. 11/97-Cus. dated 1.3.97. The Commissioner (Appeals) gave partial relief to the respondents as the original authority did not grant the benefit of Notification No. 11/97-Cus. dated 1.3.97 to the equipments imported by the respondents. The Revenue is aggrieved over the decision of the Commissioner (Appeals) for granting exemption in Notification No. 11/97-Cus. dated 1.3.97 to Needles of Stitching machine. Further, the Commissioner (Appeals) has re-classified the goods "Fabric washer and Fabric dryer" to attract tine lower rate of duty. The Revenue is aggrieved over the above decision of the Commissioner (Appeals). Hence they have come before this Tribunal for relief.
Shri B.L. Meena, ld. SDR appeared for the Revenue and Shri M.S. Kumaraswamy, Id. Consultant for the respondents.


3. We have gone through the Notification No. 11/97-Cus. dated 1.3.97. This Notification by Sl.No. 151 exempts parts of stitching machine from payment of duty. In our view the Commissioner (Appeals) has rightly granted the benefit of the exemption to needles meant for stitching machines. The Revenue is not able to convince us that needles are not parts of the stitching machine. In these circumstances we reject the Revenue's contention on this point. As regards, "Fabric washer and Fabric dryer", originally they were assessed to duty under Heading No. 8450.11 as household and laundry type washing machines with rate of duty of 40% and 20%. The Commissioner (Appeals), in his order, has classified these goods under sub-heading 8451.40 and 8451.21 as industrial type of washing machine with rate of duty 20%. The Commissioner (Appeals)'s finding that they are industrial type machines is not erroneous as contended by the Revenue considering the fact that the import is a knit-wear unit. In view of this, there is no merit in the Revenue's appeals. Hence, both the Revenue appeals are rejected.

Operative portion of the order was pronounced in open Court on 13.9.2005.

Equivalent 2006 (073) RLT 0375 (CESTAT-Che.)

Equivalent 2006 (196) ELT 0322 (Tri. - Chennai)