1987 (5) TMI 134 - AT - Central Excise

Tribunal Upholds Customs Authorities' Decision on Auxiliary Duty Rates for Imported Timber

COLLECTOR OF CUSTOMS, BANGALORE Versus WESTERN INDIA PLYWOOD MFG. CO. LTD. AND ANOTHER

COLLECTOR OF CUSTOMS, BANGALORE Versus WESTERN INDIA PLYWOOD MFG. CO. LTD. AND ANOTHER - 1987 (30) E.L.T. 545 (Tribunal) Issues:- Determination of applicable rates of auxiliary duty of customs on imported timber from Burma.- Interpretation of relevant notifications under Section 25(1) of the Customs Act, 1962.- Rejection of claims for refund of excess auxiliary duty charged.- Applicability of the Tribunal's decision in a similar case.- Consideration of concessional rates of duties with reference to the country of origin.Analysis:The judgment involved five appeals with a common issue regarding the determination of auxiliary duty of customs on imported timber from Burma. The Customs authorities assessed the consignments to auxiliary duty despite nil basic customs duty under Section 25(1) of the Customs Act, 1962. The dispute arose from the interpretation of two rates of basic duty applicable to timber, one being nil for specified countries like Burma. The appellants paid higher auxiliary duty rates and later sought refunds, which were initially rejected but allowed on appeal by the Collector of Customs (Appeals), leading to the present appeals.During the hearing, the departmental representative stated that submissions made in a previous case were relevant to the present appeals. The respondents' consultant argued that the Tribunal's decision in another case was applicable, emphasizing that concessional rates of duties with reference to the country of origin should determine the applicable rate of auxiliary duty. In the case of timber imports from countries like Burma, Nepal, Bhutan, and Bangla Desh, all having nil concessional rates, the highest rate would be relevant for auxiliary duty calculation.The Tribunal agreed with the respondents' submission, citing the previous decision that the standard rate of duty in the Customs Tariff Act did not have a nexus to the country of origin. Only concessional rates fixed by the Central Government under Section 25(1) of the Customs Act were relevant. When multiple concessional rates exist, the highest determines the auxiliary duty rate. Consequently, the auxiliary duty applicable to the present imports would be as per the relevant notifications related to goods with nil or less than 60% ad valorem duty. Therefore, the impugned orders were upheld, and the appeals were dismissed.