Rubber cess on imported natural rubber was held unsustainable, with Revenue's demand rejected under prior Tribunal rulings.

Rubber cess was held not leviable on imported natural rubber where the demand was raised in the manner adopted by Revenue. The Tribunal followed its earlier rulings that cess under the Rubber Act is not recoverable on such imports on the stated basis, and found the demand unsustainable. It also noted that the position under the Advance Authorisation Scheme supported the assessee's stand. The impugned demand was therefore rejected as lacking merit.

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Issues: Whether rubber cess was leviable on imported natural rubber and whether the demand raised against the importer was sustainable.

Analysis: The Tribunal followed its earlier decisions holding that cess under the Rubber Act was not recoverable on imported natural rubber in the manner demanded by Revenue. It accepted the view that the controversy stood covered by prior Tribunal rulings and that the demand on imported rubber was not sustainable. The exemption position under the Advance Authorisation Scheme was also consistent with the assessee's stand, and the impugned demand had no merit.

Conclusion: The demand of rubber cess on imported natural rubber was not sustainable and the appeal filed by Revenue was rejected.

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