Customs levy measured by excise duty upheld where charging provision authorised the impost on imported textile goods.

Cess on imported polyester filament yarn was examined under the statutory scheme governing textiles and customs. The text explains that the levy derived from Section 5A(1) of the Textiles Committee Act, 1963, while imports could attract additional customs duty under Section 3 of the Customs Tariff Act, 1975 read with Section 12 of the Customs Act, 1962, measured by reference to the excise duty on like goods manufactured in India. It emphasises that the character of a fiscal impost depends on the charging provision, not the measure used. On that basis, the levy was treated as legally sustainable and the constitutional challenge under Articles 19(1)(g), 265 and 300A failed.

---

---

Issues: Whether cess on imported polyester filament yarn was leviable under the statutory scheme and whether the petitioners were entitled to declaration, injunction, and refund on the ground that the levy was without authority of law.

Analysis: The levy of cess was traced to Section 5A(1) of the Textiles Committee Act, 1963, under which a cess in the nature of duty of excise is imposed on textiles and textile machinery manufactured in India, with the relevant rules defining cess accordingly. The Court held that when the same articles are imported, Section 3 of the Customs Tariff Act, 1975 read with Section 12 of the Customs Act, 1962 permits levy of additional customs duty measured with reference to the excise duty leviable on like goods if manufactured in India. The character of the impost is determined by the charging provision, not by the measure adopted. The levy was therefore held to be legally supportable, and the challenge based on Articles 19(1)(g), 265 and 300A of the Constitution of India failed.

Conclusion: The cess on the imported yarn was held to be valid and the petitioners were not entitled to the reliefs sought.

Final Conclusion: The petitions failed on merits because the levy was upheld as a lawful customs impost measured with reference to the excise duty component applicable to like goods manufactured in India.

Ratio Decidendi: The nature of a fiscal levy is determined by its charging provision, and an additional customs duty measured by reference to excise duty on like domestic goods remains a valid customs levy when authorised by the governing statute.

---