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TMI Blog2018 (1) TMI 438X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to duty of excise under Section 3(1) of the Customs Tariff Act, 1962 was paid at the concessional rate of duty at 8% adveloram in terms of notification No.29/2005- CE as amended. For easy reference the relevant notification is reproduced below; (1) (2) (3) (4) "5A 54 All filament yarns procured from outside and subjected to any process by a manufacturer who does not have the facilities in his factory (including plant and equipment ) for the manufacture of filament yarns of Chapter 54. Explanation For the purpose of this exemption, manufacture of yarns means manufacture of filaments of organic polymers produced by,- (a) Polymerization of organic monomers, such as, polymides, polyesters, polyuretenes, or polyvinyl derivativ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in this section referred to as the additional duty) equal to the excise duty for the time being leviable on a like article if produced or manufactured in India and if such excise duty on a like article is leviable at any percentage of its value, the additional duty to which the imported article shall be so liable shall be calculated at that percentage of the value of the imported article: Provided that in case of any alcoholic liquor for human consumption imported into India, the Central Government may, by notification in the Official Gazette, specify the rate of additional duty having regard to the excise duty for the time being leviable on a like alcoholic liquor produced or manufactured in different States or, if a like alcoholic liqu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ility (for manufacture of filament yarn of chapter 54) (iv) The resultant goods emerging out of the process so subjected to will also fall under Chapter 54. 4.6 With regard to the requirement that the filament yarn should be procured from outside , neither the said notification nor the Central Excise Act or Rules define the words procured from outside . This being so, the commonly understood connotation of the word, in its most literal sense, will require to be adopted and understood accordingly. There is no requirement in the notification that filament yarn should be" procured from outside and only from any other manufacturer within India" or for that matter, that it should be procured from "outside", but not from outside India". In th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... input by the importer, in their own factory for subjecting to some process. This being so, it is only the resultant of the imported yarn after such processing in the factory, provided further that such resultant goods also fall under Chapter 54, that will attract the benefit of reduced 8% duty liability under Entry 5A of the Notification. 4.12 Additional duty of customs on the imported will necessarily be on par with the excise duty leviable on a like article produced / manufactured in India. This being so, the additional duty of customs will be equal to the central excise duty liability in respect of the input filament yarn manufactured and cleared to the manufacturer availing Entry 5A. We are therefore of the considered opinion that fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f M/s. Vareli Weaves Pvt. Ltd. Vs. UOI - 1996 (83) E.L.T. 255 (S.C.), Hon'ble Court unequivocally held that the countervailing duty must be levied only in the state in which they are when imported. The relevant portion of the judgment is reproduced as under:- "6. Countervailing duty must be levied on goods in the state in which they are when they are imported. Section 3 of the Customs Tariff Act so mandates. The POY imported by the appellants fell in the slot of 100 deniers and above but not above 750 deniers. It was, therefore, liable to that rate of countervailing duty as was provided for in the said clause (iv) of the exemption notification. There was no warrant for the levy of countervailing duty as provided for in the said clause (i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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