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1999 (5) TMI 29 - SC - Customs
Levy of additional duty of customs (CVD) under Section 3(1) of the Customs Act, 1975 on import of asbestos fibre - whether manufacturing activity taken place or not - applicability conditions of levy of duty of excise on import of goods for the purpose of levy of CVD
Held that:- there can be no manner of doubt that additional duty which is levied under Section 3(1) of the Tariff Act is independent of the customs duty which is levied under Section 12 of the Customs Act. Secondly, it has been held by the Three Judge Bench in this case that excise duty is leviable if the article has undergone production or manufacture. The observation in Khandelwal Metal & Engineering Works case which seems to suggest that even if no process of manufacture or production has taken place the imported articles can still be subjected to the levy of additional duty does not appear to be correct inasmuch as the measure for levy of additional duty is the quantum of excise duty leviable on a similar article under the Excise Act.
As a result of the aforesaid discussion it follows that on the asbestos fibre imported into India the appellants were not liable to pay any duty under Section 3 of the Customs Tariff Act. The High Court, therefore, erred in discussing the writ petitions filed by the appellants.
Allow these appeals with the result that the writ petitions filed by the appellants stand allowed. The demand of additional duty from the appellants is quashed but the respondents shall not be liable to refund any additional duty realised so far from the appellants.