1997 (9) TMI 203 - AT - Customs

Summary

Issues:
Levy of Cess under Section 12 of the Rubber Act, 1947 on imported Natural Rubber.

Analysis:
The case involved the levy of Cess under Section 12 of the Rubber Act, 1947, on imported Natural Rubber. The Ministry of Finance, based on a clarification from the Ministry of Commerce, issued a letter stating that Cess is levied on rubber produced in India and not on rubber imported. The Ministry of Commerce also confirmed this in a separate communication. The appellants argued that the Ministry's clarification should be followed, and the Cess demanded on imported rubber should be set aside. The Tribunal agreed, citing that the Ministry's instructions are binding as per Supreme Court rulings. Therefore, the Cess demanded on the imported rubber was deemed invalid, and the orders of the lower authority were set aside, allowing the appeals of the appellants with consequential relief.