1992 (1) TMI 249 - AT - Customs

Summary

Issues:
Levy of Additional Duty on imported goods under Section 3(3) of the Customs Tariff Act, 1975.

Analysis:
The case involved a dispute regarding the levy of Additional Duty on imported re-rollable scrap by M/s. India Metal Industries. The respondents imported the scrap and were assessed to duty under Item 73.15(1) CTA and C.V. Duty at Rs. 165/- per M.T. Subsequently, they filed a refund claim seeking reassessment under Customs Notifications. The Assistant Collector rejected the claim, leading to an appeal before the Collector (Appeals). The Collector allowed the reassessment claim under Item 73 CTA but rejected the C.V. Duty claim, stating that the imported goods were scrap of used unserviceable items. The Revenue appealed against this decision, challenging the Collector's findings on the levy of additional duty.

The Appellate Tribunal considered the arguments presented by both parties. The Revenue contended that the Additional Duty is leviable on imported goods under Section 3(3) of the Customs Tariff Act, 1975, regardless of whether similar goods are charged Central Excise Duty in India. They cited the judgment in Khandelwal Metal & Engg. Works v. Union of India and an Order passed by the Tribunal in another case to support their position. The respondents' counsel agreed that countervailing duty (Additional Duty of Customs) was leviable on the imported goods.

The Tribunal rejected the reasoning of the Collector (Appeals) that the imported goods, being scrap of used unserviceable items, cannot attract Central Excise Duty and, therefore, no countervailing duty can be levied. Relying on the cited judgments and concessions made by the respondents' counsel, the Tribunal held that the Additional Duty is applicable to imported goods, irrespective of their nature as scrap. Consequently, the Tribunal allowed the appeal, set aside the impugned Order-in-Appeal, and restored the Assistant Collector's decision on the levy of Additional Duty. The cross-objections filed by the respondents were also disposed of accordingly.