TMI Blog2006 (5) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 3 of the Customs Tariff Act, 1975 on the polished marble slabs. Section 3 of the said Customs Tariff Act, 1975 is set out hereunder: 3 Levy of additional duty equal to excise duty, sales tax, local taxes and other charges.-- (1) Any article which is imported into India shall, in additional, 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 produced or manufactured in India and if such excise duty on a like article is leviable at any per centage of its value, the additional duty to which the imported article shall be so liable shall be calculated at that percentage of the value of the imported article: Provided that in case of any alcoholic liquor for human consumption imported into India, the Central Government may, by notification in the Official Gazette, specify the rate of additional duty having regard to the excise duty for the time being leviable on a like alcoholic liquor produced or manufactured in different States or, if a like alcoholic liquor is not produced or manufactured in any State, then, having regard to the excise duty which would be leviable for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ady held that cutting and polishing of marbles into slabs do not amount to manufacture, therefore, no excise duty is leviable and hence, the additional customs duty which is levied to counter-balance excise duty, cannot be imposed. 8. On the contrary, learned Counsel appearing on behalf of the respondent contended that there are two types of duties - customs duty and countervailing duty at the time of importation of goods into India. The charging section for customs duty is Section 12 of the Customs Act. According to that section, duties of customs shall be levied at such rate as may be specified under the Customs Tariff Act, 1975 or any other law for time being in force on goods imported into India. Charging section countervailing duty is Section 3 of the Customs Tariff Act, 1975. Under the said section in addition to customs duty there is a levy of additional duty (countervailing duty). The rate of such additional duty is identical to the rates of excise duty on identical or similar goods manufactured in India. 9. He also contended that it is a fact that under a notification No. 26 of 2000 dated March 1, 2000 the Government of India exempted customs duty on marble slabs imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontended that the appeal should be allowed and the judgment of the Hon'ble First Court should be set aside. 14. After hearing the parties it appears to us that the levy of additional duty of customs under Section 3(1) of the Customs Tariff Act, 1975 on import of polished marble slabs is challenged by the appellant in this appeal. The appellant imported the said goods into India. The department sought to raise a demand of additional duty of customs under Section 3(1) of the said Act. According to the appellant, no duty was payable inasmuch as the polished marble which was imported, had not been manufactured or produced and thus no duty was leviable. 15. It also appears that under the Central Excise Act, 1944 the said item was covered within the tariff item of the Central Excise Act, 1944 and on the same there was a liability to pay the duty of excise. It was also contended by the department that the marble was polished and reached in its character as a polished marble after process of manufacture and the said item correctly falls within the tariff of the schedule to the Excise Act. Therefore, the demand under Section 3(1) of the said Act was raised because the imported ite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act there is no words for the purpose of determining the levy of customs duty on goods imported into India what is relevant is Section 12 of the Customs Act read with Section 2. Paragraph 13. On the other hand levy of additional duty under Section 3 is equal to the excise duty for the time being leviable on the like article which is imported into India if produced or manufactured in India. The rate of additional duty under Section 3(1) on an article imported into India is not relatable to the First and the Second Schedules of the Customs Act but the additional duty if leviable has to be equal to the excise duty which is leviable under the Excise Act. This itself shows that the charging section for the levy of additional duty is not Section 12 of the Customs Act but is Section 3 of the Customs Tariff Act, 1975, This apart Sub-sections (3), (5) and (6) of Section 3 refer to additional duty as being leviable under Sub-section (1). In Sub-section (5), for instance, it is clearly stated that the duty chargeable under Section 3 shall be in addition to any other duty imposed under this Act or under any other law for the time being in force. Paragraph 14. There are different types o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Hon'ble Supreme Court in Hyderabad Industries Ltd. and Anr. v. Union of India and Ors. (supra) held that the additional duty was a customs duty, Section 12 of the Customs Act being the charging section, which was leviable on the import of goods into India and it had no nexus with the nature and quality of goods so imported. Another reason which was given by the Bench while upholding the levy was that the brass scrap which was imported was a by-product and was, therefore, in any case a manufactured product. Hence, the Hon'ble supreme Court held that the decision in Khandelwal Metal and Engineering Works v. Union of India (supra) to the effect that additional duty of customs is leviable merely on the import of the article even if it is not manufactured or produced in India does not appear to be correct inasmuch as the said conclusion is based on the premise that Section 12 of the Customs Act, and not Section 3(1) of the Tariff Act, is the charging section. The Hon'ble Supreme Court further held as follows: ...As we have already observed on a correct interpretation of the relevant provisions of the two Acts there can be no manner of doubt that additional duty which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said notification issued by the Central Government being notification No. 26/2000 Cus. dated March 1,2000 which was subsequently amended from time to time and the latest amendment bearing No. 57/2000-Cus. dated June 28, 2005 whereby it has been specifically stated that whereby an exemption was granted to the specified goods imported under free trade agreement with Sri Lanka, the Central Government in the public interest exempted the goods of the description specified in column (3) of the table annexed to the said notification and granted an exemption when the goods were/are imported under the free trade agreement with Sri Lanka. 26. Learned Counsel appearing on behalf of the Union of India drew our attention to chapter 68 of Section 13 of the Excise Tariff of India and contended that the articles mentioned therein includes polished marble slabs in tariff item No. 6802 21 90, but it appears to us that it has been specifically stated under the said item, the description of goods Other and he tried to convince that the said word Other would include polished marble slabs. 27. In Rajasthan State Electricity Board v. Associated Stone Industries and Anr. (supra), the Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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