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TMI Blog1991 (9) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... ticle 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. Explanation to Section 3(1) of the Customs Tariff Act, 1975 is as under : "Explanation. - In this section, the expression 'the excise duty for the time being leviable on a like article if produced or manufactured in India' means the excise duty for the time being in force which would be leviable on a like article if produced or manufactured in India or, if a like article is not so produced or manufactured, which would be leviable on the class or description of articles to which the imported article belongs, and where such duty is liable at different rates, the highest duty." 3. In the present case, the respondents have sought to levy additional customs duty under Section 3(1) of the Customs Tariff Act, 1975 on zinc ash imported into India. Since the additional customs duty is leviable at the rate at which excise duty would be levied on the article if produced or manufactured in India, it is necessary to turn to the Central Excise Tariff. Item No. 26B of the Central Excise Tariff, as fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "Zinc Rate of duty 1. Unwrought, including ingots, cakes, bars, blocks, hard or soft slabs, billets, plates, cathodes, anodes, pellets, spelter, dross, ashes and broken zinc. Rs. 500/- per MT 6. As from 1-3-1981 there has been a substantial change in the Tariff Item No. 26B. Zinc ash along with dross have been removed from the Tariff Item No. 26B(1) which deals with unwrought zinc. A separate category (1a) dealing with waste and scrap has been added. Explanation II to this tariff item now makes it clear that ash and dross are included in the Tariff Item No. 26B(1a). 7. It is urged by Mr. Deodhar that the amendment in Tariff Item No. 26B as from 1-3-1981 does not bring about any change in the existing position relating to the excise duty leviable on zinc ash. The change merely obviates the controversy as to the classification of zinc ash and makes it clear that zinc ash would fall under Item 26B and not under Item 68. Mr. Deodhar relies in this connection on the portion of the Statement of Objects and Reasons relating to this tariff item in the Finance Bill for the year 1981. He also relies on the speech made in the Parliament at that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed - "The scope of the term 'waste and scrap' is being clearly defined; zinc dross and ash are being included in waste and scrap." This also does not throw any light on the question whether only zinc ash resulting from smelting operations is covered by Tariff Item No. 26B(1a). Hence, even if we resort to these external aids, these do not support Mr. Deodhar's contention. 11. It is true that prior to 1-3-1981 there was a controversy as to whether only zinc ash from smelting operation was covered under Tariff Item No. 26B(1) as it then stood, or not. But we do not see why that controversy should be imported into the amended Tariff Item No. 26B after 1-3-1981. 12. Under an excise Notification No. 104/73-C.E., dated 21st April 1973, an exemption was granted to zinc dross and zinc ash arising in the course of zinc smelting operations in zinc smelters from the whole of the duty of excise leviable thereon. The notification states - "....the Central Government hereby exempts such zinc dross and zinc ashes, falling under sub-item (1) of Item 26B of First Schedule to the Central Excises and Salt Act, 1944 as are arising in the course of zinc smelting operations in zinc smelters, fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cisable commodity. Once it is established that excise duty is leviable on a commodity if produced or manufactured in India, a corresponding additional customs duty is leviable on a similar commodity when imported into India under Section 3(1) of the Customs Tariff Act, 1975. It was also urged before us that in fact no excise duty is levied on zinc ash produced in India in the course of galvanising operations. We do not have any material before us in support of this contention. In any case under T.I. No. 26B(1a) excise duty is leviable on such zinc ash. 14. In the premises, the petitions before us, which challenge the levy of such additional Customs Duty on zinc ash, must fail. Rule is accordingly discharged in each of these petitions with no order as to costs. The respondents are thereupon entitled to encash the bank guarantees furnished by the petitioners under the various interim orders herein. But the same shall be done as set out hereinafter. 15. If, in a given case, any of the petitioners are able to establish before the Customs Authorities that the zinc ash imported by them is produced in the course of smelting operation in zinc smelters, such petitioners will be entitled ..... X X X X Extracts X X X X X X X X Extracts X X X X
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