1991 (10) TMI 43

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..... the petitioners is the liability of the petitioners to pay additional duty payable under Section 3(1) of the Customs Tariff Act, 1975 in respect of the ship imported for the purpose of breaking up. Few facts are required to be stated to appreciate the grievance of the learned counsel. Petitioners are a partnership firm and are carrying on business of purchasing old and unseaworth ships and disman .....

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..... Act is in the nature of countervailing duty. It was contended that the petitioners who have imported ship for the purpose of breaking up are not liable to pay additional duty or countervailing duty because the concept of levying countervailing duty is to bring the imported article on par with locally manufactured in respect of payment of duty. Countervailing duty, says the learned counsel, is lev .....

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..... eme Court examined the ambit of provisions of Section 3(1) of the Tariff Act in a decision reported in AIR 1985 SC1211 = 1985 (20) E.L.T. 222 (SC) - Khandelwal Metal Engineering Works and Anr. v. Union of India and Ors. and held that it cannot be said that Section 3(1) of the Tariff Act is an independent charging section or that additional duty which it speaks of is not a duty of customs but is a .....

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