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TMI Blog1988 (3) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Revisional Authority, while passing the impugned order. In this regard, he refers to the provisions of Section 3(1) of the Customs Tariff Act, 1975, which deals with the additional duty. The concept of this additional duty is dealt with by the Supreme Court in Khandelwal Meta land Engineering Works and Another, etc. v. Union of India and Others [1985(20) E.L.T. 222 (S.C.)], paragraphs 3,4,5 and 7 of which read as follows:- "Section 2(15) of the Customs Act, 1962 defines 'duty' to mean a duty of customs leviable under the Act. Chapter V of the Act contains provisions for the levy of, and exemption from, customs duties. By Section 12(1) of the Act, 'Except as otherwise provided in the Actor in any other law for the time being in force', duties of customs shall be levied at such rates as may be specified under the Customs Tariff Act, 1975 or under any other law for the time being in force, on goods imported into or exported from India. Section 25 of the Customs Act, which deals with the power of the Central Government to grant exemption from the payment of customs duty, provides by sub-section (1) that, if the Central Government is satisfied that it is necessary in the public ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the duties of customs shall be levied under the Customs Act are specified in the First or Second Schedule'. Nothing more would be ordinarily required to complete the scope of Section 12, Customs Act. The scheme incorporated in that section read with Section 2 of the Tariff Act is analogous to the scheme embodied in Section 4, Income-tax Act read with the relevant provisions of the Finance Act. The levy specified in Section 3(1) of the Tariff Act is supplementary levy, in enhancement of the levy charged by Section 12 of the Customs Act and with a different base constituting the measure of the import. In other words, the scheme embodied in Section 12 is amplified by what is provided in Section 3(1). The customs duty charged under Section 12 is extended by an additional duty confined to imported articles in the measure set forth in Section 3(1). Thus, the additional duty which is mentioned in Section 3(1) of the Tariff Act is not in the nature of countervailing duty. In Ashok Service Centre v. State of Orissa (1983) 2 SCR 363, which considered the nature of levy of additional Sales-tax under an Orissa Act, this Court observed. 'This construction receives support from the use of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecified in Section 2) be liable to an additional duty equal to the excise duty for the time being leviable on a like article produced or manufactured in India'. The contention of Mr. Sorabjee, who appears on behalf of the appellants, is that the brass scrap imported by them is not produced or manufactured in India because the damaged articles of brass which constitute brass scrap, are not only incapable of being manufactured but are in fact not manufactured. Learned Counsel contends that if the change in the condition of an article is the result of an accidental event, that is to say, an event not intended, or if the changes is the result of ordinary wear and tear, the change thus produced cannot be termed as manufacture. It is urged that the article imported by the appellants are what they are because, they had suffered damage or had been subjected to ordinary wear and tear in the natural course. If such goods cannot be produced or manufactured in India, for the reason that they cannot be and are. In fact, hot produced or manufactured in India, or for the matter of that anywhere, no additional duty can be levied upon them under Section 3(1). According to the learned Counsel, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dance with the classifications, contemplated under the provisions of the Customs Tariff Act. 2. Mr. P. Narasimhan, Learned Senior Central Government Standing Counsel, submits that it is the law that was in existence on the date of the imposition of this customs duty that has to be taken into consideration. The Customs duty and excise duty are different and they could be levied in different spheres and as such the appreciation of the matters that were placed before the initial authority and the appellate authority as well as the conclusion arrived at by the revisional authority are correct, and in confirmity in law. In this regard, he refers to the decision in Lucas T.V.S. Ltd. v. Government of India [1984 (17) E.LT. 93 (Mad.)], paragraph 7 of which reacts as follows: "As per Section 2A countervailing duty is leviable for any article which is imported into India in addition to customs duty. The goods in question imported by the appellant were treated as one coming under Item 70(1) of the First Schedule to the Tariff Act, since they contained less than 97 per cent aluminium, Item 27 of the First Schedule to the Excise Act will definitely cover goods imported by the appellant, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntervailing duty on the goods imported by the appellant herein." 3. It is seen from the order under revision that the countervailing duty has been construed as duty under Item 27(b) of the Central Excise Act. It was so confirmed by the revisional authority. The petitioner herein agitated the levy of countervailing duty on the ground that the forgings in question having been classified as finished product under the Customs Tariff Act, could not be classified as 'semi-finished forgings' under the Central Excise Tariff. In this regard, Mr. P. Narasimhan, Senior Central Government Standing Counsel appearing for the respondents, has brought to the notice of this Court the dictionary meaning of 'Forge', 'Forged, Forging' etc., which is extracted from the Webster's New World Dictionary: "'Forge' fabrics; workshop faber (workman) 1. a furnace for heating metal to be wrought 2. a place where metal is heated and hammered or wrought into shape; smithy 3. a place where wrought iron is made as from iron ore. 'Forged, Forging' 1. to shape (Metal) by blows or pressure, usually after heating. 2. to form; shapel produce. 3. to imitate for purposes of deception or fraud esp. to c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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