Cess on imported natural rubber held not leviable after Tribunal followed earlier rulings and withdrew contrary clarification.

Cess on imported natural rubber was examined under Section 12 of the Rubber Act read with Section 3 of the Customs Tariff Act, 1985. The Tribunal treated the issue as already settled by earlier decisions holding that cess was not applicable to imported rubber and followed that line of authority. It also noted that the contrary departmental clarification had been withdrawn, leaving no basis to sustain the levy on the imported goods. The result was that cess was held not leviable on the imported rubber and the appeals succeeded.

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Issues: Whether cess was leviable on imported natural rubber under Section 12 of the Rubber Act read with Section 3 of the Customs Tariff Act, 1985.

Analysis: The issue was treated as already covered by earlier Tribunal decisions holding that cess was not applicable to imported rubber. The Tribunal followed those decisions and noted that the contrary departmental clarification had been withdrawn, without finding any basis to sustain the levy on the imported goods.

Conclusion: Cess was not leviable on the imported rubber, and the appeals succeeded.

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