1984 (9) TMI 173 - AT - Customs

Summary

Issues:
1. Interpretation of Notification No. 164/75-CE regarding refund of C.V. duty.
2. Application of Notification provisions to imported goods.
3. Determination of duty rate based on the date of clearance from the warehouse.
4. Applicability of the proviso to Notification No. 164/75 on levy aluminum.

Analysis:
The case involved six revision applications treated as appeals, challenging the Appellate Collector's dismissal of a refund application for C.V. duty based on Notification No. 164/75-CE. The appellants argued that the effective duty rate was lower than the tariff rate due to clearance under Section 15(b) of the Customs Act. The Collector relied on the explanation to Section 2A of the Indian Tariff Act, stating that the duty was levied at the tariff rate (Rs. 2,000/- per MT) without considering the effective rate (Rs. 600/- per MT or Rs. 1,500/- per MT) applicable at clearance (para 2).

The appellants contended that the subject goods were not levy aluminum and, therefore, not subject to the conditions of the Notification. They argued that the Notification applied only to levy aluminum, citing a previous CEGAT order for support. The Department, however, maintained that the duty should be determined based on the clearance date, not the Notification No. 49/76 rate of Rs. 600/- per MT (para 3-4).

The Notification exempted aluminum from excess excise duty under certain conditions, including not applying to levy aluminum under the Aluminum (Control) Order, 1970. The Tribunal agreed with the appellants that the conditions of the Notification did not apply to imported goods manufactured from aluminum imported abroad. The Tribunal held that the proviso to the Notification did not apply to the subject goods, as they were not levy aluminum (para 5).

Lastly, an objection regarding duty calculation based on the entry of goods into Indian territorial waters was not pursued. The Tribunal set aside the Collector's orders, allowing the appeals with relief. The C.V. duty was to be calculated at the rate applicable at the clearance date under Section 15(b) of the Customs Act (para 5).