Delhi
Cloth & General Mills Co. Ltd. & Anr Vs. Union of India & Anr [1996] INSC 1167 (19 September 1996)
Bharucha
S.P. (J) Bharucha S.P. (J) Venkataswami K. (J)
ACT:
HEAD NOTE:
O R D
E R
A
limited argument is addressed in this appeal that impugns the judgment and
order of a Division Bench of the High Court of Rajasthan.
The
appellants manufacture tyre yarn cord and fabric for which purpose they import tyre
cord grade woodpulp from the United State of America. The appellants were called upon to pay additional duty
thereon under the provisions of Sections 3 of the Customs Tariff Act.
Among
other contentions raised by the appellants was this: The said woodpulp was not
produced or manufactured in India. Under
the terms of Section 3 additional duty had, therefore, to be calculated on the
basis of the excise duty that would be leviable on the class or description of
articles to which the said woodpulp belonged. There was no entry in the Tariff
that related to an article of the like of the said woodpulp. Entry 68, being a
residuary entry relating to no class or description of goods, did not apply.
No
additional duty was, therefore, leviable on the said woodpulp.
The
said contention was rejected by the Assistant Collector and by the High Court
in the writ petition filed the appellants.
It is
the only contention raised before us.
Section
3 of the Customs Tariff Act, so far as it is relevant, reads thus:- "S.3.-
Levy of Additional Duty equal to Excise Duty:
(1)
Any article which is imported into India shall, in addition, be liable to a
duty (hereinafter in the section referred to as the additional duty) equal to
the excise duty for the time being leviable on a like article if produced or
manufactured in India and if such excise duty on a like article is leviable at
any percentage of its value, the additional duty to which the imported article
shall be so liable of the value of the imported article.
Explanation:- In this section, the expression
the excise duty for the article if being leviable on a like article if produced
or manufactured in India means the excise duty for the time being in force
which would be leviable on a like article if produced or manufactured in India,
or if a like article is not so produced or manufactured, which would be leviable
on the class or description of articles to which the imported article belongs,
and where such duty is leviable at different rates, the highest duty," It
is the Explanation which is important. The expression "the excise duty for
the time being leviable on a like article if produced or manufactured in India
used in the body of sub-section (1) is explained to mean the excise duty for
the time being in force (a) which would be leviable on a like article if
produced or manufactured in India, the excise duty that would be leviable on
the class or description of articles to which the imported article belongs.
Where
a like article is not produced or manufactured in India additional article upon the basis
of the excise duty that is leviable on the class or description of articles to which
the imported article belongs. Articles which are not elsewhere described,
falling under the residuary Entry 68, form a class by themselves. Hence, if a
like article is not described in the Tariff, additional duty is leviable on the
imported article upon the basis of the levy of excise duty under the provisions
of Entry 68.
The
only contention raised before us is rejected.
The
appeal is dismissed, with no order as to costs.
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