1992 (1) TMI 247 - AT - Customs

Summary

Issues:
1. Classification of imported scrap tyres for the purpose of levy of additional duty under the Central Excise Tariff Act.
2. Denial of total exemption of additional duty under Notification 76/86-C.E. for "cut tyres and cut tubes."
3. Interpretation of the expression "like articles" in Section 3(1) of the Customs Tariff Act.
4. Compliance with the import policy regarding the condition of subjecting tyres to a cut before clearance from customs.

Analysis:
1. The appellants imported 130 pieces of used scrap tyres and declared them under sub-heading 4012.20. The Assistant Collector classified them as "Pneumatic tyres, of rubber" under sub-heading 4011.50 for levy of additional duty. The Assistant Collector justified the classification based on the Central Excise Tariff Act and granted exemption under Notification 41/89-C.E. The Collector (Appeals) upheld this decision, emphasizing that goods must be considered in the form they are imported for the purpose of levy of additional duty.

2. The Assistant Collector denied total exemption under Notification 76/86-C.E. for "cut tyres and cut tubes." The Collector (Appeals) rejected the appeal, stating that any subsequent cutting of tyres after import does not confer exemption. The appellants argued for exemption under Section 24 of the Customs Act, which was also dismissed. The Collector (Appeals) clarified that the term "like article" refers to goods of a particular type, regardless of their condition, new or old.

3. The appeal raised the issue of interpreting the expression "like articles" in Section 3(1) of the Customs Tariff Act. The Tribunal explained that when like articles are not produced in India, duty is levied based on the class or description of the imported article. Thus, the absence of a specific entry in the Central Excise Tariff for "used pneumatic tyres" does not exempt old tyres from additional duty under the Customs Tariff Act.

4. The import policy required tyres to be cut before clearance from customs for reclaiming rubber. The appellants argued that since the tyres needed to be cut as per the policy, they should qualify for exemption under Notification 76/86-C.E. However, the Tribunal held that since the tyres were imported uncut, they were not eligible for exemption, even if subsequently cut to comply with the policy. The Tribunal affirmed the lower authorities' decisions and rejected the appeal on all grounds.