2004 (8) TMI 281 - AT - Customs

Summary

Issues:
1. Interpretation of Notification 29/97 Cus. regarding exemption for an import under EPCG scheme for an "Automatic Seamless Glove Making Machine".
2. Classification of knitted gloves as textile garments under the notification.
3. Application of Section Note 13 to Section XI of Customs Tariff for determining eligibility under the notification.
4. Reliance on Textile Commissioner's classification and dictionary meaning of knitwear.
5. Interpretation of the term "Textile Garments (including knitwear)" in the notification.
6. Relevance of certification from the Government of India, Ministry of Textiles regarding knitted seamless gloves as knitted garments.

Analysis:
1. The Revenue appealed against the Commissioner (Appeals) decision granting exemption under Notification 29/97 Cus. for an import under EPCG scheme of an "Automatic Seamless Glove Making Machine". The original authority rejected the import citing that knitted gloves are not textile garments as per the notification. The CC (Appeals) allowed the appeal stating that Section Note 13 of Section XI includes knitwear under textile garments.

2. The Revenue contended that knitted gloves should not be treated as knitwear and relied on Section Note 03 of Section XI, stating that knitted gloves are accessories, not garments. They argued that the notification does not provide exemption for knitted gloves, as they are not classified as Textile Garments under Section Note 13.

3. The Tribunal held that the exemption under Notification 29/97 is for an export incentive scheme and should be interpreted strictly. Referring to a Supreme Court decision, they emphasized that the wording of the notification should not be ignored. The term "Textile Garments (including knitwears)" was interpreted broadly to include all types of knitwears, including gloves made from knitted material.

4. The Tribunal further explained that gloves are considered essential wear in various countries and are part of formal attire or protection from cold. They disagreed with the Revenue's interpretation of Note 13 to Section XI and upheld the classification/certificate from the Government of India, Ministry of Textiles, certifying knitted seamless gloves as knitted garments.

5. Considering the persuasive value of the certification and the common understanding of knitted seamless gloves as garments, the Tribunal rejected the Revenue's appeal. They concluded that knitted gloves should be considered as part of Textile Garments under the notification, thus upholding the decision of the CC (Appeals).