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Issues Involved:
1. Applicability of Customs Duty Exemption Notifications to Additional Duty under Section 3(1) of the Customs Tariff Act, 1975. 2. Inclusion of Packing Material, Landing, and Stevedoring Charges in Assessable Value for Customs Duty. 3. Interpretation of Relevant Provisions of the Customs Act, 1962, and the Customs Tariff Act, 1975. Detailed Analysis: 1. Applicability of Customs Duty Exemption Notifications to Additional Duty under Section 3(1) of the Customs Tariff Act, 1975: The petitioner argued that the exemption notifications under Section 25 of the Customs Act, 1962, should apply to both basic customs duty and additional duty under Section 3(1) of the Customs Tariff Act, 1975. The court examined the relevant provisions and determined that the additional duty is indeed a customs duty. However, it is distinct from the basic customs duty and is calculated based on the excise duty leviable on a like article if produced or manufactured in India. The court referred to the Supreme Court's judgment in Khandelwal Metal and Engg. Works v. Union of India [1985 (20) E.L.T. 222 (SC)], which clarified that Section 3(1) of the Customs Tariff Act is not an independent charging section but an extension of the customs duty charged under Section 12 of the Customs Act. The additional duty is not in the nature of countervailing duty but is meant to equalize the price level of imported goods with those manufactured in India. The court concluded that the exemption notifications under Section 25 of the Customs Act do not automatically extend to the additional duty under Section 3(1) of the Customs Tariff Act unless there is a specific provision for such exemption. This is supported by the Supreme Court's judgment in Thermax Pvt. Ltd. v. Collector of Customs, Bombay [1992 (61) E.L.T. 352 (SC)], which emphasized that the additional duty varies based on the excise duty rates and not the customs duty rates. 2. Inclusion of Packing Material, Landing, and Stevedoring Charges in Assessable Value for Customs Duty: The petitioner raised objections to the inclusion of the cost of packing materials, landing, and stevedoring charges in the assessable value for customs duty. The court noted that these issues had already been settled in previous judgments and did not require further examination in this case. The main contention that survived was the applicability of exemption notifications to additional duty. 3. Interpretation of Relevant Provisions of the Customs Act, 1962, and the Customs Tariff Act, 1975: The court provided a detailed interpretation of the relevant provisions of the Customs Act, 1962, and the Customs Tariff Act, 1975. Section 12 of the Customs Act specifies that duties of customs shall be levied at rates specified under the Customs Tariff Act. Section 25 of the Customs Act grants the Central Government the power to exempt goods from customs duty in the public interest. Sections 2 and 3 of the Customs Tariff Act were also examined. Section 2 specifies the rates of customs duty, while Section 3 imposes an additional duty equal to the excise duty on a like article if produced or manufactured in India. The court emphasized that the additional duty is a customs duty but is distinct from the basic customs duty and is calculated based on excise duty rates. The court concluded that the exemption notifications under Section 25 of the Customs Act do not automatically apply to the additional duty under Section 3(1) of the Customs Tariff Act. The petitioner must demonstrate that the imported goods are eligible for exemption from excise duty to claim exemption from additional duty. Conclusion: The court dismissed the petitions and held that the exemption notifications under Section 25 of the Customs Act do not extend to the additional duty under Section 3(1) of the Customs Tariff Act unless there is a specific provision for such exemption. The petitioner may apply to the appropriate authority to determine if there is any exemption from excise duty for the imported goods. There will be no order as to costs.
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