Additional customs duty on imported rubber may match excise cess on domestic goods under the Rubber Act, with refund denied.

Imported rubber attracts additional duty of customs under Section 3(1) of the Customs Tariff Act, 1975 where a cess is levied as duty of excise on like indigenous rubber under Section 12 of the Rubber Act, 1947. The distinction drawn was between a cess levied directly on imports and an additional customs duty meant to equalise the excise burden on domestic goods. Earlier circulars relied on by the assessee had been withdrawn, and the later clarification supported levy of the equivalent additional duty on imports. The refund claim was therefore rejected.

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Issues: Whether additional duty of customs under Section 3(1) of the Customs Tariff Act, 1975 is payable on imported rubber equal to the cess levied as duty of excise under Section 12 of the Rubber Act, 1947.

Analysis: The dispute turned on the distinction between levy of cess directly on imported rubber and levy of additional duty of customs equal to the excise duty component applicable to like goods produced in India. The earlier circulars on which the assessee relied had been withdrawn, and the later clarification affirmed that where cess is levied as a duty of excise on indigenous goods, an equivalent additional duty of customs is payable on imported goods under Section 3(1) of the Customs Tariff Act, 1975. The prior orders relied on by the assessee were distinguished on the basis that they dealt with the levy of cess on imports and not the levy of additional duty of customs equal to such cess.

Conclusion: Additional duty of customs was held leviable on imported rubber equal to the cess under the Rubber Act, 1947, and the refund claim was rejected.

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