2004 (5) TMI 590 - AT - Customs

Summary

Issues:
1. Whether demands of CESS on natural rubber imported by the appellants are sustainable in law as demands of "Additional duty of Customs equal to duty of Excise"?

Analysis:
The judgment by the Appellate Tribunal CESTAT CHENNAI dealt with appeals against demands of CESS on imported natural rubber. The key issue was the sustainability of these demands as "Additional duty of Customs equal to duty of Excise." The Tribunal referred to previous cases where it was established that any levy on imported natural rubber should be made by the competent authority under the Rubber Act, 1947. The Tribunal noted that the department had withdrawn its appeal against this view. The appellants' counsel cited a relevant order of the Apex Court in the case of CCE v. Vikrant Tyers Ltd., emphasizing that similar demands were not sustainable. The Tribunal's larger bench had also returned a reference, confirming that duty demands on imported natural rubber were not valid. Additionally, the Tribunal mentioned a specific case where appeals were allowed based on the orders of the Apex Court and the Tribunal's larger bench.

In light of the judicial authorities and precedents mentioned, the Tribunal set aside the impugned demands in the instant appeals, ultimately allowing the appeals. The judgment was dictated and pronounced in open court by the members of the Tribunal.