TMI Blog2015 (8) TMI 337X X X X Extracts X X X X X X X X Extracts X X X X ..... estion of levying additional duty in form of giving such protection does not arise at all – Therefore, appellant was not liable to pay any additional duty under Section 3 – Order of CEGAT accordingly set aside – Decided in favour of Appellant. - Civil Appeal No. 8534 of 2003 with C.A. No. 7028 of 2002 - - - Dated:- 16-3-2015 - A.K. Sikri and Rohinton Fali Nariman, JJ. Shri Rajeev K. Virmani, Sr Adv., Sandeep Narain, Ashish Kothari and Jyoti Prakash, Advocates. for M/s. S. Narain Co, for the Appellant. Shri Jaideep Gupta, Sr. Adv., S.A. Haseeb, Ajay Sharma and B. Krishna Prasad, Advocates, for the Respondent. ORDER In C.A. No. 7028/2002 : The appellant (hereinafter referred to as the Assessee ) carrying the business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he said judgment reads as under : 6. Counsel for the appellants rely strongly on the Objects and Reasons of Section 3 of the Tariff Act in support of their contention that the said section is a charging section and imposes a countervailing duty. The Statement of Objects and Reasons says : Clause 3 provides for the levy of additional duty on an imported article to counterbalance the excise duty leviable on the like article made indigenously, or on the indigenous raw materials, components or ingredients which go into the making of the like indigenous article. This provision corresponds to Section 2-A of the existing Act, and is necessary to safeguard the interests of the manufacturers in India. This Statement lends prima facie sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s crystal clear. The purpose of additional duty, also known as countervailing duty under Section 3, is to protect the domestic market from unhealthy competition. Once there is no excise duty on such goods produced domestically question of levying the additional duty in the form of giving such a protection does not arise at all. We, therefore, do not agree with the view taken by the authorities below and hold that the appellant is not liable to pay any additional duty under Section 3 of the Act. The order of the CEGAT dated 8-10-2001 is accordingly set aside. The appellant shall be entitled to refund additional duty filed in accordance with law. In C.A. 8534/2003 4. In view of the order passed in C.A. No. 7028/2002 as aforementioned, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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