TMI Blog1999 (7) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 3 namely, the value of the imported article would include the Customs duty payable thereon. In commercial parlance, the value of an imported article may include customs duty and this is what has been made clear and accepted in sub-section (2) of Section 3. We, therefore, do not see any conflict between the two sub-sections and it is not possible to accept the contention that sub-section (2) has gone beyond the provisions of sub-section (1). Appeal dismissed. - 5308 of 1983 - - - Dated:- 21-7-1999 - B.N. Kirpal, M. Srinivasan and S. Rajendra Babu, JJ. [Order]. - The challenge in this writ petition is to the provisions of Section 3 of the Customs Tariff Act, 1975. 2. The petitioners are engaged in the business of import of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the additional duty on any imported article, where such duty is leviable at any percentage of its value, the value of the imported article shall, notwithstanding anything contained in Section 14 of the Customs Act, 1962 (52 of 1962), be the aggregate of - (i) the value of the imported article determined under sub-section (1) of the said Section 14 or the tariff value of such article fixed under sub-section (2) of that section, as the case may be; and (ii) any duty of customs chargeable on that article under Section 12 of the Customs Act, 1962 (52 of 1962), and any sum chargeable on that article under any law for the time being in force as an addition to, and in the same manner as a duty of customs, but not including the duty referred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that Act." 4. The grievance of the petitioners is that in so far as sub-section (2) of Section 3 provides for inclusion of customs duty in calculating the value of the imported article for the purposes of levy under the said section is concerned, the same is unconstitutional and ultra vires. 5. Shri Dholakia, learned Senior Counsel for the petitioners contended that Section 3(1) is the charging section. Section 3(2) is really the machinery section which has been created for giving effect to the charging section. He submits that any loading of value to the goods imported is not permissible and in effect the machinery provision of Section 3(2) travelled beyond the charging provision and hence Section 3(2) is ultra vires Section 3(1). Lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w for the time being in force as an addition to and in the same manner as the duty of Customs, shall be included in determining the value of the imported article. It is not necessary to refer to other sub-sections but it is clear from the aforesaid that both the sub-sections are different limbs of the charging section. 8. We do not see in the present case any impediment in the legislature providing for the manner in which the value of an article should be calculated for the purposes of determining the rate of tax which can be imposed. The customs duty which is required to be taken into consideration for the purposes of levying additional duty would normally form part of the value of the imported article on which the additional duty is to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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