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TMI Blog1991 (9) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... at such rates as they may be specified under the Customs Tariff Act, 1975 or any other law for the time being in force, on goods imported into, or exported from, India. Under Section 3(1) of the Customs Tariff Act, 1975, 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 produced or manufactured in India and if such excise duty on a like article is leviable at any percentage 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. Explanation to Section 3(1) of the Customs Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eight over each of the other metals. Explanation II. - 'Waste and Scrap' means waste and scrap of zinc fit only for the recovery of metals or for use in the manufacture of chemicals and includes dross and ash." Item (1a) of Tariff Item No. 26B levies excise duty at the rate of Rs. 2,625/- per metric tonne on waste and scrap. Explanation II to Item No. 26B makes it clear that waste and scrap includes dross and ash. It also clarifies that this entry refers to waste and scrap of zinc fit only for the recovery of metals or for use in the manufacture of chemicals. It is an accepted position that zinc ash imported by the petitioners is used for recovery of metals and may also be used in the manufacture of chemicals. Therefore, this zinc ash is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r that the amendment in Tariff Item No. 26B as from 1-3-1981 does not bring about any change in the existing position relating to the excise duty leviable on zinc ash. The change merely obviates the controversy as to the classification of zinc ash and makes it clear that zinc ash would fall under Item 26B and not under Item 68. Mr. Deodhar relies in this connection on the portion of the Statement of Objects and Reasons relating to this tariff item in the Finance Bill for the year 1981. He also relies on the speech made in the Parliament at that time by the Finance Minister. He submits that in this light, Tariff Item No. 26B(1a) should be interpreted to include only zinc ash produced in the course of smelting operations. Zinc ash, which is p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resort to this external aid becomes unnecessary." 10. We may also point out that the speech of the Finance Minister in Parliament while dealing with this amendment in the Finance Bill of 1981 was merely this : "...There has been considerable debate and dispute on the question of assessment of waste and scrap of these metals. To set these at rest it is proposed to specifically cover waste and scrap of these metals under the respective tariff entries." This statement does not support the contention advanced by Mr. Deodhar that only a certain kind of zinc ash was sought to be covered by Tariff Item No. 26B(1a). In the Statement of Objects and Reasons pertaining to this item, it is stated - "The scope of the term 'waste and scrap' is being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted from the whole of the duty of excise leviable thereon. Hence, at all material times, zinc dross and zinc ashes, arising as a result of zinc smelting operations, have been exempt from payment of excise duty. By virtue of this notification, similar zinc ash produced from zinc smelting operations, when imported into India, would also be exempted from the payment of additional customs duty under Section 3(1) of the Customs Tariff Act, 1975. It is, however, for the petitioners to establish that zinc ash, which is imported by them is zinc ash arising in the course of zinc smelting operations in zinc smelters. If they satisfy this requirement of the exemption notification, the benefit of such exemption should be extended to zinc ash imported i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into India under Section 3(1) of the Customs Tariff Act, 1975. It was also urged before us that in fact no excise duty is levied on zinc ash produced in India in the course of galvanising operations. We do not have any material before us in support of this contention. In any case under T.I. No. 26B(1a) excise duty is leviable on such zinc ash. 14. In the premises, the petitions before us, which challenge the levy of such additional Customs Duty on zinc ash, must fail. Rule is accordingly discharged in each of these petitions with no order as to costs. The respondents are thereupon entitled to encash the bank guarantees furnished by the petitioners under the various interim orders herein. But the same shall be done as set out hereinafter. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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