TMI Blog2014 (8) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... le under Section 3 of the Customs Tariff Act and Special Duty of Customs under Section 68(1) of the Finance Act, 1996. It will not be correct, as held by first appellate authority that duty exempted under Notification No.94/96-Cus represents only Basic Customs Duty but will represent both the Basic Customs Duty and Additional Duty of Customs (CVD). What is required to be paid, as per Sr.No.2A of the Table to Notification No.94/96-Cus will also represent CVD though the measure would be equivalent to the Central Excise duty leviable on the re-imported goods at the time of import. The additional duty of Customs (CVD) is thus not wholly exempted under Notification No.94/96-Cus. Revenue neutrality - Held that:- Even if SAD is paid by the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order appealed against held that duty paid under Notification No.94/96-Cus has to be considered as Basic Customs Duty and that Special Additional Duty (SAD) of Customs is leviable on the imported goods. 2. As there were divergent views on the issue therefore, the following issue was referred to the Larger Bench for consideration:- Whether goods which have been re-imported and cleared availing the benefit of Notification No.94/96-Cus have to be held as having suffered additional customs duty leviable under Section 3 of Central Tariff Act and therefore are leviable to SAD leviable under Section 3A of Customs Tariff Act or not? 3. Larger Bench vide Order No.M/12713/WZB/AHD/2013, dt.19.06.2013 held that in the context of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i-Che.) vi) Lakshmi Machine Works Ltd Vs CCE 2011 (263) ELT 313 (Tri-Che.) 4.1 It was also argued by the ld.Advocate that SAD is also not payable on account of revenue neutrality. 5. Shri K.J. Kinariwala, (AR) appearing on behalf of the Revenue argued that entire duties exempted under Notification No.94/96-Cus represent only the Basic Customs duty which will also mean that quantum/measure adopted for payment on the basis of Central Excise duty not paid, will also be considered as Basic Customs duty and accordingly SAD will not be exempted under Notification No.23/2002-Cus. He strongly defended the order passed by the first appellate authority. 6. Heard both sides and perused the case records. The issue involved in the pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the duty of customs leviable thereon which is specified in the said First Schedule, the additional duty leviable thereon under section 3 of the said Customs Tariff Act and special duty of customs leviable under sub-section (1) of section 68 of the Finance (No. 2) Act, 1996 (33 of 1996), as is in excess of the amount indicated in the corresponding entry in column (3) of the said Table. SN Description of Goods Amount of Duty 2A Goods (exported) under Duty Entitlement Passbook (DEPB) Scheme. Amount of Central Excise duty leviable at the time and place of importation of goods plus amount of drawback of Excise D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. It will not be correct, as held by first appellate authority that duty exempted under Notification No.94/96-Cus represents only Basic Customs Duty but will represent both the Basic Customs Duty and Additional Duty of Customs (CVD). What is required to be paid, as per Sr.No.2A of the Table to Notification No.94/96-Cus will also represent CVD though the measure would be equivalent to the Central Excise duty leviable on the re-imported goods at the time of import. The additional duty of Customs (CVD) is thus not wholly exempted under Notification No.94/96-Cus. In this regard, Para 4 of judgment of CESTAT Mumbai in the case of CC (Import) Mumbai Vs Manugraph Industries Ltd [2008 (228) ELT 388 (Tri-Mum)] is relevant and is reproduced below wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty on goods imported to India as prescribed under the Customs Tariff Act or any other law for the time in force. Section 3 of Central Excise Act authorises levy of Excise duty on goods produced or manufactured in India and there is no provision under that Act also to levy Central Excise duty on goods imported into India. The interpretation of Notification No. 94/96-Cus. that it exempts the re-imported goods from all types of Customs duty subject to payment of amount of Central Excise duty not paid is, therefore, not in conformity with the statutory provisions as payment of Central Excise duty on re-imported goods cannot be imposed through a Notification issued under Section 25 of the Customs Act, 1962. The Notification issued under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
