Full Judgment Text
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 2
PETITIONER:
DELHI CLOTH & GENERAL MILLS CO. LTD. & ANR.
Vs.
RESPONDENT:
UNION OF INDIA & ANR.
DATE OF JUDGMENT: 19/09/1996
BENCH:
BHARUCHA S.P. (J)
BENCH:
BHARUCHA S.P. (J)
VENKATASWAMI K. (J)
ACT:
HEADNOTE:
JUDGMENT:
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
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 2
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.