2005 (6) TMI 66 - AT - Customs

Summary

Issues: Eligibility of second-hand fabric dyeing machine with dyeing kitchen for concessional rate of duty under Notification No. 11/97.

In this judgment by the Appellate Tribunal CESTAT, Mumbai, the issue at hand was the eligibility of a second-hand fabric dyeing machine with dyeing kitchen for the concessional rate of duty of 10% under Notification No. 11/97. The appellants imported the machine under specific Bills of Entry dated 10-1-98 and 12-2-98, seeking the benefit of the concessional rate as per Serial No. 150 of the notification. The dispute arose as the department contended that the imported items were not complete fabric dyeing machines since they lacked certain accessories like a batch roll stand and washing unit. However, the appellants argued that the technical literature supported the completeness of the machine itself as a fabric dyeing machine, even without these accessories, which are only required post the dyeing process. The crux of the matter was whether the imported item satisfied the definition of a fabric dyeing machine, as per the notification's provisions.

The Tribunal, comprising Ms. Jyoti Balasundaram, Vice-President, and Shri Moheb Ali M., Member (T), deliberated on the issue. They found it challenging to agree with the Revenue's contention that the absence of accessories should lead to the denial of the concessional rate of duty. The Tribunal emphasized that the crucial factor was whether the item in question met the definition of a fabric dyeing machine, which it did in this instance. They opined that even if the accessories were not imported alongside the dyeing machine, the benefit should still be extended under the notification since the imported item functioned as a fabric dyeing machine, aligning with the definition in the notification. Consequently, the Tribunal held that the appellants were indeed eligible for the concessional rate of duty, overturned the previous order, and allowed the appeal, ruling in favor of the appellants.