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Issues:
Determining whether the E-6000 Usha Passap 220V Knitting Machine is a Domestic Knitting Machine or an Industrial Knitting Machine for importation under O.G.L or requiring a license. Analysis: The Revenue claimed the machine is a domestic knitting machine based on the appellants' own catalogue describing it as a "world's most advanced home knitting machine." A comparison with an Industrial knitting machine, Universal MC-720, showed the imported machine's lower range and capacity. The appellants argued it is an industrial knitting machine used for hosiery items production by self-employed individuals on a small scale, with a value of around Rs. 80,000. They obtained a clarification from the Dy. Director General of Foreign Trade supporting the machine's importation under certain EXIM Policy codes. The appellants contended that the comparison with the Industrial Knitting Machine was unfair as relevant details were not disclosed during the hearing, and the comparison with MC-720 was inaccurate based on production capacity. The ld. Advocate referenced judgments stating that advertisement literature like catalogues should not solely determine a product's classification due to exaggerated claims. The ld. Advocate argued for allowing the appeal and setting aside the impugned order. The JDR for the Revenue reiterated the Lower Authorities' findings, emphasizing substantial differences in parameters between the imported machine and the Industrial Knitting Machine MC-720, such as working width and gauge. The Tribunal considered the ITC aspect and the EXIM Policy, highlighting the persuasive value of ITC authorities' opinions in interpreting the policy. The certificate from DGFT supporting importation was not addressed in the impugned order. The Tribunal found merit in the appellants' argument regarding comparable production capacities between the imported machine and MC-720. It noted that various industrial machines have different capacities and parameters, and a lower width does not preclude classification as an industrial knitting machine. The machine's use in Small Scale Industry was not considered by the lower authorities. The Tribunal emphasized that while a catalogue may guide a machine's function, capacity is crucial for determining compliance with the EXIM Policy, concluding that the imported machine is not domestic. In light of the discussion, the Tribunal allowed the appeal, setting aside the impugned order and providing consequential relief to the appellant.
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