TMI Blog1994 (12) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... Petitioner of Special Civil Application No. 8195 of 1988 contends that an amount of Rs. 30,757.69 ps. (Rupees thirty thousand seven hundred fifty-seven and paise sixty-nine only) has been unlawfully recovered as and by way of cess on textiles. The petitioner of Special Civil Application No. 8196 of 1988 contends that an amount of Rs. 2,70,989.11 ps. (Rupees two lakhs seventy thousand nine hundred eighty-nine and paise eleven only) has been unlawfully recovered in the same way as contended by the petitioner of Special Civil Application No. 8195 of 1988. Further, contention of the petitioners is that under the provisions of the Customs Tariff Act, 1975 levy of additional duty or countervailing duty of customs calculated at certain percentage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oom industry." The Textile Committee (Cess) Rules defines the term "cess" under Rule 2(c). As per this definition "cess" means the duty of excise leviable under sub-section (1) of Section 5A. In view of the aforesaid provisions of the Act it is contended that by whatever nomenclature it is called, it is in essence the duty of excise. 4. The contention that the Customs Tariff Act, 1985 provides for levy of customs duty and it does not provide for levy of excise duty and, therefore, the imposition of cess which is in the nature of excise duty is illegal and void cannot be accepted. Such a question was raised before the Hon'ble Supreme Court in the case of Khandelwal Metal Engineering Works v. Union of India reported in 1985 (20) E.L.T. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1975 would be attracted. Once the provisions of the Customs Tariff Act, 1975 are attracted to the import of any article, it would become exigible to levy of customs duty, the measure of which would be commensurate with the excise duty leviable on such articles, if manufactured in India. It is not disputed that if polyester filament yarn is manufactured in India it would be subject to excise duty. The basic duty and excise duty is provided under the provisions of the Textiles Committee Act, 1963, i.e., cess on textiles. In view of this position, when polyester filament yarn is imported, the same measure of duty is levied from the importer as provided under the provisions of Section 3 of the Customs Tariff Act, 1975 read with Section 12 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said interim order and have not paid the amount of customs duty equivalent to cess. The petitioners will be liable to pay the same within a period of thirty days from the date of intimation with sufficient particulars from the Department. In turn the Department is directed to compute the amount and give intimation to the petitioners latest by January 31, 1994. On receipt of such intimation, the petitioners are directed to pay the amount to the concerned authority within a period of one month from the date of receipt of the intimation. If the amount is not paid within one month from the date of receipt of the intimation, it shall carry interest at the rate of 18% per annum from the date of this order. 8. Subject to the aforesaid observatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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