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TMI Blog1987 (3) TMI 223X X X X Extracts X X X X X X X X Extracts X X X X ..... sed by the customs authorities to auxiliary duty of customs (leviable in terms of the annual Finance Acts) at the rate of 30% ad valorem in terms of Customs Notification No. 126/84 dated 11-5-1984. The appellants cleared the goods on payment of the auxiliary duty so assessed. Later, the appellants were served with notices calling upon them to show cause why an amount of Rs. 3,09,113.30 should not be demanded from them on the ground that auxiliary duty of customs should have been charged at 40% ad valorem and not 30% ad valorem as charged at the time the goods were assessed to duty and allowed clearance. In due course, the Assistant Collector of Customs, Bombay confirmed the demands by four separate orders. Against these orders, the importer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inance Act as was in excess of the amount calculated at the rate specified in the corresponding entry in Column 3 of the said Table. For the purpose of the present dispute S.Nos. 1 and 2 of the Table, along with the Explanation appended to the Table are relevant and are reproduced below:- TABLE S.No. Description of goods Rate (1) (2) (3) 1. Goods in respect of which the rate of duty of customs specified in the said First Schedule, read with any relevant notification of the Government of India for the time being in force is 60 per cent ad valorem or more. Forty per cent of the value of the goods as determined in accordance with the provision of Section 14 of the Customs Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f its country of origin are (a) nil in the case of imports from Burma, Bhutan, Bangladesh and Nepal and (b) 60% for imports from all other countries. Thus, there are two different rates applicable to timber depending upon its country of origin. The higher of the rates is 60% ad valorem and therefore, S.No. 1 of the Table to the aforesaid notification would apply. In the result the rate of auxiliary duty of customs applicable to the present imports of timber from Burma would be 40% ad valorem. 6. The contention for the appellants, on the other hand, is that there is, in actuality, only one rate of basic customs duty leviable on timber by reason of the country of its origin, namely nil for imports from Burma, Bhutan, Bangladesh and Nepal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty is truly a rate fixed by reason of the country of origin of timber. No other reduced rate of duty, at a level less than 60% ad valorem but higher than nil, appears to have been fixed in respect of imports of timber from any country other than Burma, Bhutan, Bangladesh and Nepal. No notification in this regard has been brought to our notice. Therefore, there is in effect and reality only one rate of duty fixed in respect of imports of timber by reason of the country of origin. The standard rate of 60% ad valorem is applicable to imports of timber from any country in the world. This rate has no relation or nexus to the country of origin of timber. It cannot therefore, be said that the standard rate of duty is also a rate of duty fixed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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