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2013 (2) TMI 4 - HC - CustomsNotification 21/2002 Granting exemption from import duty on tags, labels, stickers, belts, buttons or hangers imported by bonafide exporters Whether assessee is entitled to duty exemption on import of parts of buttons used for making garments for export Assessee not imported the buttons in full but imported only parts of buttons Held that - Buttons, when fixed on the garment turn to be full Benefit of notification cannot be declined to the assessee merely because import was button in parts and not in made up form Decided against the revenue.
Issues: Interpretation of duty exemption on import of parts of buttons for making garments for export under Notification 21/2002 (Customs).
Analysis: 1. The primary issue in this case was whether the respondent was entitled to duty exemption on the import of parts of buttons used for making garments for export under Notification 21/2002 (Customs). The Department contended that the respondent had not imported full buttons but only parts of buttons, which, according to them, were not entitled to exemption. 2. The Tribunal upheld the respondent's eligibility for exemption after examining the parts of buttons used in making garments. It was observed that when the parts of the button were fixed on the garment, they made a full operational press button. Each part of the button consisted of two items riveted on both sides of the cloth, and when fixed together, they formed a complete button. The Court noted that the press button could not be fixed directly on the cloth but required all four parts to be fixed together to function as a complete button. 3. The Court emphasized that the notification granting duty exemption should be interpreted to achieve its objective of facilitating duty-free imports for exporters to maintain competitive prices in the international market. It was concluded that the respondent had utilized the parts of buttons to make garments with full buttons, and thus, the benefit of the notification could not be denied based on the form of import. The Court upheld the Tribunal's decision and dismissed the departmental appeal, highlighting the importance of interpreting notifications to support exporters and promote international trade competitiveness.
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