Additional customs duty on imported natural rubber upheld, and refund of rubber cess rejected under the prevailing precedent.

Imported natural rubber was held liable to additional duty of customs under Section 3(1) of the Customs Tariff Act, read with the rubber cess mechanism under Section 12 of the Rubber Act. The Tribunal followed the larger bench view and its own earlier order in the appellant's case, finding that the earlier line of decisions and the withdrawal of Board instructions did not alter the governing legal position. On that basis, refund of rubber cess paid on the imports was not sustainable and the refund claims failed.

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Issues: Whether refund of rubber cess paid on imported natural rubber was allowable, and whether additional duty of customs was leviable on such imports equivalent to the cess under the Rubber Act.

Analysis: The dispute turned on the levy of additional duty of customs under Section 3(1) of the Customs Tariff Act, 1975 in respect of imported natural rubber, read with the cess mechanism under Section 12 of the Rubber Act, 1947. The Tribunal noted that the issue had already been considered in the appellant's own case and that the earlier line of decisions was not sufficient to displace the later precedent. It relied on the view that the larger bench decision and the subsequent Tribunal order in the appellant's own case supported levy of additional duty on imported rubber, and that the withdrawal of the earlier Board instructions did not alter the legal position. The claim for refund therefore could not succeed.

Conclusion: The imported natural rubber was liable to additional duty of customs equivalent to rubber cess, and the refund claims were not sustainable.

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