Cess on imported natural rubber held not leviable where prior Tribunal rulings and a departmental circular governed the issue.

Cess under Section 12 of the Rubber Act was held not leviable on imported natural rubber because the issue was already covered by prior Tribunal rulings and the applicable departmental circular dated 22.7.97. Applying that settled ratio to the imports in question, the Tribunal found no basis to sustain the levy confirmed below. The impugned order was set aside, with consequential relief.

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Issues: Whether cess under Section 12 of the Rubber Act, 1997 was leviable on imported natural rubber.

Analysis: The issue was treated as already covered by earlier Tribunal decisions involving the same question. Those decisions held that cess was not leviable on imported rubber under Section 12 of the Rubber Act, 1997 in view of the Government circular issued in F. No. 572/6/97-L.C. dated 22.7.97. Applying the same ratio to the present imports, the Tribunal found no basis to sustain the levy confirmed below.

Conclusion: The cess was held not leviable on imported natural rubber, and the impugned order was set aside, with consequential relief.

Ratio Decidendi: Where the levy of cess on imported natural rubber stands covered by prior Tribunal rulings and the applicable departmental circular, the cess cannot be sustained under Section 12 of the Rubber Act, 1997.

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