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TMI Blog2000 (11) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... y has to be understood in the light of it's stated objective set out in paragraph 128, and that Chapter 17 of the Policy which reads as under : "The object is to provide to the Registered Exporters' by way of import replenishment, the materials (all or some) required in the manufacture of the products exported." 3.Appendix 17 to that Policy, which refers to cotton ready-made garments, hosiery and knitwear in 0.1(ix), refers to "pearl headed pins/stapling pins and industrial stapling machines." 4.It is the finding of all the authorities below that the stapling machine imported, though the machines are capable of, and are widely used in homes and offices, are used in the manufacturing process of the applicant. All the authorities have stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so used in the garment industry. It was submitted that similarly though the stapler imported viz. HD-10 is widely used elsewhere, it is sufficient for the purposes of Policy, if such stapler is found to be used in the garment industry. 6.Learned counsel submitted that it would be an incongruous situation where the garment manufacturer is allowed to import staple pins, but is to be prevented from importing staplers in which those pins are to be used. Reference was made to the decision of this Court in the case of Union of India v. Raj's Continental Exports Private Limited -1987 (27) E.L.T. 256, wherein, import of stapler pins of the specification HD-10(1) was held by this Court to be permissible, as it was held that that item fell within th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... required to be understood with reference to the principal purpose as required under Note 5 in Chapter 84 of the Customs Tariff Act, 1975, which states that a machine which is used for more than one purpose is for the purposes of classification, to be treated as if it's principal purpose were it's sole purpose. Counsel also referred to paragraph 244 in Chapter 22 of the policy which provides for the application of rules for interpretation of the entries in the First Schedule to the Customs Tariff Act, 1975 to the clearance of consignments imported under this policy. 8.There can be no doubt that the REP licence does not enable the licensee to import any of the prohibited items unless specifically permitted to do so by the REP licence. The pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certainly connotes organized effort aimed at bringing into existence a product or at the least the effort applied in an organized manner for the processing of material with a view to bring about the changes therein. When a machine is qualified by the term "industrial", the normal implication would be that what is referred to is a machine used in the industry, or it is capable of being used in the industry. 10.The literature placed before us does not show the classification of staplers into industrial and non-industrial staplers. The Revenue has not placed any material. The applicant has placed the brochures issued by the manufacturer which does not describe any of it's staplers as industrial. The different varieties of staplers are mentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacturer of garment. To further clarify matters regarding the manner in which the stapling machine is used in the manufacture of garments, an affidavit of Production Manager of the applicant has also been filed before us. It has been reiterated there that for the sealing and packing in polythene bags in which the garments are placed, stapling machine is used. It is also stated that the machine is used to affix papers with the necessary markings of pieces of cloth which ultimately go up to make the garment. It is also used when swatches of materials are placed with the trim card and stapled making use of model HD-10 stapler, the card being used to note down the design, number and such other information. 13.If the manufacturer is permitt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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