TMI Blog1997 (1) TMI 526X X X X Extracts X X X X X X X X Extracts X X X X ..... odyear Code EO2 NN. The imported goods were cleared upon payment of duty as demanded. The appellants then claimed refund of the additional duty paid by them as now stated. The claim having been refused by the authorities below, the Tribunal was moved. 2. The Customs Tariff Act, 1975, prescribes in Section 3 for the levy of additional duty equal to excise duty. Sub-section (1), its Explanation and sub-section (3) of Section 3 are relevant, and they read thus : 3. Levy of Additional duty equal to excise duty. - (1) Any article which is imported into India shall, in addition, be liable to a duty (hereafter in this section referred to as the additional duty) equal to the excise duty for the time being leviable on a like article if produc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es made by the Central Government in this behalf. 3. Under the provisions of Section 3(3) of the Customs Tariff Act, the Additional Duty Rules, 1976, have been framed. Rule 2 states that for the purposes of Section 3(3) the additional duty leviable on any imported article specified in column (2) of the Table annexed hereto shall be equal to the excise duty for the time being leviable on the material specified in the corresponding entry in column (3) of the said Table to the extent that material is used in the manufacture of the imported article . The Table reads thus : TABLE S. No. Name of article Name of material (1) (2) (3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) below 38.5 deniers 63.80 (ii) 38.5 deniers and above but below 88 deniers 56.80 (iii) 88 deniers and above but below 121 deniers 49.80 (iv) 121 deniers and above but below 165 deniers 42.80 (v) 165 deniers and above 24.60 * * * Explanation I. - base yarn means yarn falling under sub-item II(i)(a) of Item No. 18 of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944), from which textured yarn has been produc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 of Notification 55/78-C.E.), if such textured yarn is produced out of base yarn. If it is produced otherwise, the rate of duty is ₹ 24.60 per kg. [Sl. No. 2(a)(v) of Notification 55/78]. In such a situation, the yarn content of the imported fabrics would attract duty at the higher rate viz., ₹ 24.60 per kg. (plus special excise duty as may be applicable). 6. Learned Counsel for the appellants submitted that once the Tribunal had come to the conclusion that the imported goods were textured yarn produced out of base yarn, only that amount of additional duty was payable thereon as was specified against the description textured yarn produced out of base yarn in the Table of the said notification. There was no question then o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and ingredients of the same nature as are used in the manufacture of such article or are similar thereto. The Central Government may, by notification in the Official Gazette, direct that an imported article shall bear additional duty representing such portion of the excise duty leviable on such raw materials, components and ingredients as it may by rules determine. It is in exercise of the power conferred by Section 3(3) that the Additional Duty Rules, 1976, have been framed and they specify that additional duty shall be imposed on fabrics containing more than 10 per cent by weight of synthetic fibre or yarn which shall be equivalent to the excise duty leviable on the synthetic fibre and yarn used therein. 9. Insofar as the imported go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 80 per cent by virtue of the Explanation to Section 3(1) of the C.T. Act. He submits that the goods imported by the assessee [are] parts of refrigerating and air-conditioning equipment . They are chargeable at different rates of duty accordingly as they fall under item with Serial No. 4 (80 per cent) or that with Serial No. 5 (nil) or that with Serial No. 6 (20 per cent) or that with Serial Nos. 7 and 8 (25 per cent). In such a situation, he says, the provisions of the Explanation to Section 3(1) are attracted and hence the assessee will be liable to duty at the highest rate of 80 per cent. We are loth to permit the department to raise at this stage a fresh contention no taken before the Tribunal or earlier. That apart, we do not think it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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