9911796707
TMI Blog1991 (7) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Customs Tariff Act, 1975. Section 3 of the Customs Tariff Act empowers levy of duty equal to the excise duty for the time being leviable on a like article if produced or manufactured in India and this duty is known as countervailing duty. The goods imported by the Company are liable to additional duty or countervailing duty equivalent to the excise duty as levied on the like articles produced or manufactured in India. 2. The goods like the imported goods when manufactured in India are liable to Central Excise duty under Tariff Item No. 18 of the First Schedule to the Central Excises and Salt Act at the rates prevailing from time to time. In exercise of powers under Rule 8 of the Central Excise Rules, the Government of India by Notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chargeable with a duty of excise under the Central Excises and Salt Act, 1944 (1 of 1944) read with any notification for the time being in force issued by the Central Government in relation to the duty so chargeable, are assessed to duty, there shall be levied and collected a duty of excise equal to ten per cent of the total amount so chargeable on such goods." 4. Shri Hidayatullah, learned counsel appearing on behalf of the Company, submitted that the additional duty could not be levied under Tariff Act by including thereunder the rates of special duties of excise or the rates of additional duties of excise as levied by Finance Act, 1978 or under the Additional Duties Act respectively, on a true construction of the provisions of Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he process of manufacture is complete, the duty is levied and what exemption notification does is to exempt the manufacturer from payment of duty. Once, the concept of levy of duty and collection of duty is appreciated, then it is obvious that the contention of Shri Hidayatullah cannot succeed. In our judgment, the liability to pay countervailing duty as well as additional duty of excise cannot be disputed merely because the exemption notification provides for either partial or total exemption from payment of duty. The exemption notification does not dispense with the charge or levy of duty but merely exempts payment thereof. 5. Shri Hidayatullah submitted that expression "duty of excise" should be limited to basic duty of excise and cann ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
