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Issues involved:
- Whether the NIL rate of additional Customs duty is available to magnetic heads re-imported after repair carried out abroad. Analysis: The issue in these appeals is whether the concessional rate of customs duty is applicable to magnetic heads re-imported after repair carried out abroad. The appellant argued that repair does not amount to manufacture, hence no Central Excise Duty is leviable on repaired goods in India. The appellant relied on legal precedents to support their argument, emphasizing that if an article cannot be subjected to excise levy because it is not produced or manufactured, no additional duty can be levied on its import. However, the Revenue contended that duty is levied on goods, not on manufacture, citing Section 20 of the Customs Act and the definition of 'import' to include re-imported goods. The Revenue also argued that Additional Customs Duty is leviable on goods re-imported into India, regardless of the manufacturing process. The Tribunal held that on re-importation, goods are liable to duty as if imported for the first time in India, and Additional Duty is applicable to goods similar to those produced or manufactured in India. Since magnetic heads are manufactured products, Additional Customs duty is leviable on their re-importation. Therefore, all appeals were rejected. The main contention revolved around whether repair of goods amounts to manufacture and if Central Excise Duty is leviable on repaired goods in India. The appellant argued that repair does not constitute manufacture, hence no Central Excise Duty should be levied. Legal precedents were cited to support this argument, emphasizing that duty cannot be levied on goods not produced or manufactured in India. On the contrary, the Revenue argued that duty is levied on goods, not on the manufacturing process. The Tribunal clarified that the focus is on whether the imported article is manufactured or produced, not on the process of importation. As magnetic heads are manufactured products, Additional Customs duty is applicable on their re-importation. The interpretation of Section 20 of the Customs Act and the definition of 'import' played a crucial role in the judgment. The Tribunal emphasized that goods re-imported into India are liable to duty as if imported for the first time, as confirmed by legal precedents. Additionally, the application of Additional Duty under Section 3 of the Customs Tariff Act was discussed, highlighting that it is based on the excise duty leviable on similar goods produced or manufactured in India. The Tribunal concluded that since magnetic heads are manufactured products, Additional Customs duty is leviable on their re-importation, leading to the rejection of all appeals.
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