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2004 (7) TMI 90 - SC - CustomsNotification bearing No. 29/97-Cus. dated 1st April, 1997 exemption from custom duty was granted to capital goods, components and spares thereof etc. imported under the Export Promotion Capital Goods Scheme benefit denied - Held that:- For the purposes of manufacture of garments it cannot be said that only stitching and knitting machines are required. Apart from stitching and cutting the manufacturer may himself manufacture the yarn or fabric. No substance in the submission that the use of different words "textile garments" indicates that only machinery used directly for manufacture of garments gets 100% exemption. The use of different terms merely indicates that the 100% exemption is given to a manufacturer of garments. If the import is by a person who is manufacturing textile products then that importer will get exemption from payment of custom duty and so much of the additional duty as is in excess of 10% of the value of the goods. The difference in language is only for purposes of emphasizing that the 100% exemption is only to manufacturers of garments. So long as the imported machinery is used by a person who manufactures garments, which are then used to meet the export obligation, the importer will be entitled to benefit of 100% exemption under the Notification. Appeal dismissed.
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