TMI Blog2018 (1) TMI 438X X X X Extracts X X X X X X X X Extracts X X X X ..... r central excise duty levied on manufacture of identical goods in India. Also, goods imported into India in most cases benefit from export incentives like duty drawback in the concerned country of export. The important factum, however, is that the additional duty of customs has to be equal to the excise duty for the time being leviable. The appellants are not eligible for benefit of N/N. 29/2004 dated 9.7.2004 - Appeal dismissed - decided against appellant. - C/221/2011 - A/43366/2017 - Dated:- 22-12-2017 - Ms.SulekhaBeevi C.S. Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri G.Mani, Advocate, for the Appellant Shri B. Balmurgan, AC (AR) for the Respondent ORDER Per Bench The appellant is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of additional duty of custom equivalent to excise duty under Section 3(1) of Customs Tariff Act, 1975 on the imported filament yarn falling under heading 5402.10 of CETA, 1985 and CTA 1975. 4. Heard both sides. 5. This Tribunal in the case of SRF Polymers Ltd. vide Final Order No. 42204/2017 dated 27.9.2017 had analysed the very same issue. The relevant portion of the order is reproduced as under:- 4.2 The issue that has come up for decision is whether the goods imported by the appellants will fall under the beneficial impact of Central Excise exemption Notification No. 29/04-CE, Sl.No. 5A for the purpose of discharging additional duty of customs (CVD). 4.3 In the first place, it would be useful to appreciate the sc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al duty of customs is levied equal to the excise duty leviable to like articles if produced/manufactured in India. The duties of customs are levied at rates as specified in the Customs Tariff Act, 1975. 4.4 Additional duty of customs, also known as countervailing duty (CVD) is imposed to provide a level playing field for the indigenous goods who have to bear the brunt of local taxes, in particular central excise duty levied on manufacture of identical goods in India. Also, goods imported into India in most cases benefit from export incentives like duty drawback in the concerned country of export. The important factum, however, is that the additional duty of customs has to be equal to the excise duty for the time being leviable. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted to a process by a manufacturer who himself does not have the facility for manufacture of filament yarns of Chapter 54. Hence the requirement for the input filament yarn to be procured from outside . Further, the process to which such input filament yarn is subjected to will not take out the final product out of the Chapter Heading 54. What is manufacture of yarns for the purposes of Notification is explained in (a) and (b) of Explanation thereto. 4.8 Evidently, therefore the reduced rate of central excise duty of 8% is to such yarn which has undergone any process referred to in the S. No. 54 of the Notification. 4.9 Discernably, the filament yarn procured from outside will not be available to the manufacturer at a reduced rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , we draw sustenance on the ratio laid down by the Hon ble Supreme Court in the case of Thermax Pvt. Ltd. Vs. Collector of Customs - 1992 (61) ELT 352 (S.C), held that CVD will be equal to excise duty for the time being leviable on a like article if produced or manufacture in India. The Hon ble Apex Court went on to further observe that we have to forget that the goods are imported and imagine that the importer had manufactured the goods in India and determine the amount of excise duty that he would have been called to pay in that event. 4.14 The Hon ble Supreme Court in the case of Hyderabad Industries Vs. Union of India (supra) , while following the ratio laid down in their earlier judgment in the case of Thermax Private Limited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourism Services Pvt. Ltd. Vs. Commissioner of Customs, New Delhi - 2015 (318) ELT 3 (SC) and in the case of UOI Vs. ENGEE Industrial Serviced Co. Ltd. - 2016 (335) ELT 197 (S.C). 4.17 In the case of the present appellants themselves, the Hon ble Apex Court in the case of SRF Ltd Vs. CC, Chennai followed the ratio earlier laid down in Hyderabad Industries Ltd. and Thermax judgments and held that for additional duty, actual manufacture or production of a like article was not necessary and for that quantification of additional duty imported article has to be imagined as to be manufactured or produced in India and then to see what excise duty was leviable there on . 6. Following the above decision, we are of the considered opinion ..... X X X X Extracts X X X X X X X X Extracts X X X X
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