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TMI Blog2002 (2) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... ellants are engaged in the recording of audio cassettes falling under Heading 85.24 of the Schedule to the Central Excise Tariff Act, that the recording is done on audio cassette records of which magnetic head is an essential ingredient; that they import magnetic heads which after regular use get worn out; that these worn out magnetic heads are sent abroad for re-lapping, as no such facility is available in India; that on their re-import, after repairs, the Appellants claimed the benefit of concessional rate of customs duty on the ground that the repair does not amount to manufacture and no Central Excise Duty is leviable on repaired goods in India; that the Revenue has charged Additional Customs duty on the repaired goods. The learned Coun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Hyderabad Industries Ltd. v. U.O.I. [1999 (108) E.L.T. 321 (S.C.)] wherein the Court observed that as per Explanation, if an imported article is one which has been manufactured or produced then it must be presumed that such article can likewise be manufactured or produced in India. If the article cannot be subjected to excise levy because it is not produced or manufactured, then on the import of like articles no additional duty can be levied. The Supreme Court also observed that as held in the Thermax Pvt. Ltd. v. Collector of Customs [1992 (61) E.L.T. 352 (S.C.)] "we have to forget that the goods are imported, imagine that the importer had manufactured the goods in India and determine the amount of excise duty that he would have been ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtation, the goods imported are magnetic heads and duty is leviable; that in Tata Tea case, it was held by the Supreme Court that "under Section 20 of the Customs Act, 1962 read with the definition of 'import' as given in Clause (23) of Section 2, imported goods would include re-imported goods as well and therefore the goods sent out of India and re-imported would also be liable to payment of duty in the same manner in which they would have been liable if imported for the first time in India." The learned DR also submitted that duty under Section 3 of the Customs Tariff Act is levied on the goods and not on manufacture and production; that for imposition of additional customs duty under Section 3 of the Customs Tariff Act, it is not to be e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imported would also be liable to payment of duty in the same manner in which they would have been liable if imported for the first time in India. It is thus evident that on re-importation of goods, it would be liable to payment of duty as if imported for the first time in India. Accordingly provisions of Section 3 of the Customs Tariff Act would also be attracted which provides that any article which is imported into India shall be liable to Additional Duty equal to the excise duty for the time being leviable on a like article if produced or manufactured in India. It is not the case of the Appellants that what is being re-imported by them is not a "magnetic head" which is produced or manufactured. For the purpose of levy of duty on goods, i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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