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TMI Blog1997 (1) TMI 526X X X X Extracts X X X X X X X X Extracts X X X X ..... Fabric, Goodyear Code EO2 NN. The imported goods were cleared upon payment of duty as demanded. The appellants then claimed refund of the additional duty paid by them as now stated. The claim having been refused by the authorities below, the Tribunal was moved. 2. The Customs Tariff Act, 1975, prescribes in Section 3 for the levy of additional duty equal to excise duty. Sub-section (1), its Explanation and sub-section (3) of Section 3 are relevant, and they read thus : "3. Levy of Additional duty equal to excise duty. - (1) Any article which is imported into India shall, in addition, be liable to a duty (hereafter in this section referred to as the additional duty) equal to the excise duty for the time being leviable on a like arti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d article shall, in addition, be liable to an additional duty representing such portion of the excise duty leviable on such raw materials, components and ingredients as, in either case, may be determined by rules made by the Central Government in this behalf." 3. Under the provisions of Section 3(3) of the Customs Tariff Act, the Additional Duty Rules, 1976, have been framed. Rule 2 states that for the purposes of Section 3(3) "the additional duty leviable on any imported article specified in column (2) of the Table annexed hereto shall be equal to the excise duty for the time being leviable on the material specified in the corresponding entry in column (3) of the said Table to the extent that material is used in the manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... * * Explanation I. - "base yarn" means yarn falling under sub-item II(i)(a) of Item No. 18 of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944), from which textured yarn has been produced; .............................................................................................................................." 5. The Tribunal noted the contention on behalf of the appellant that the yarn in question fell under S. No. 1 aforementioned and not under S. No. 2(a)(v), and the basis for the contention, namely, that the supplier of the imported goods had bought base yarn and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellants submitted that once the Tribunal had come to the conclusion that the imported goods were textured yarn produced out of base yarn, only that amount of additional duty was payable thereon as was specified against the description "textured yarn produced out of base yarn" in the Table of the said notification. There was no question then of requiring the appellants to pay additional duty at a rate specified in the notification for "other textured yarn". 7. The learned Additional Solicitor General, appearing for the Revenue, placed reliance upon the Explanation to Section 3(1). In his submission, the imported goods were textured yarn in respect of which the said notification prescribed different rates of duty; therefore, und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he power conferred by Section 3(3) that the Additional Duty Rules, 1976, have been framed and they specify that additional duty shall be imposed on fabrics containing more than 10 per cent by weight of synthetic fibre or yarn which shall be equivalent to the excise duty leviable on the synthetic fibre and yarn used therein. 9. Insofar as the imported goods are concerned, they fall, as the Tribunal has found, in the category of "textured yarn produced out of base yarn". In respect of "textured yarn produced out of base yarn" the excise duty that is leviable is that specified against that description in the Table of the said notification. The Explanation to Section 3(1) says of an article which is not produced or manufactured in India t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t with Serial Nos. 7 and 8 (25 per cent). In such a situation, he says, the provisions of the Explanation to Section 3(1) are attracted and hence the assessee will be liable to duty at the highest rate of 80 per cent. We are loth to permit the department to raise at this stage a fresh contention no taken before the Tribunal or earlier. That apart, we do not think it is well founded. It is no doubt true that Item 29A of the Schedule to the C.E. Act is very wide and covers various articles. The notification also deals with various categories of articles falling under that item. But there has been no dispute at any stage that the goods we are concerned with fall under item with Serial No 8(3) of the notification. So far as the category of good ..... X X X X Extracts X X X X X X X X Extracts X X X X
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