1992 (8) TMI 172

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....7. The goods were classified under Heading 9806 CTA & 9001.00 CET Act and charged to duty at 100% + 45% + 15% in terms of Notification 68/87. Subsequently, the respondents preferred a refund claim seeking exemption from Additional Customs Duty (CVD) which was levied at 15% in terms of Central Excise Notification 71/86. The Assistant Collector of Customs, Air Cargo, Madras, rejected the refund claim. He held that under Notification 68/87, already extended to the goods, exemption is granted to goods falling under Heading 9806 CTA from so much of that portion of the duty of customs, as is in excess of the 100% and also from so much of that portion of the additional duty of customs leviable thereon under Section 3 of the CTA as is in excess of ....

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....he Ld. Consultant, Shri N.C. Sogani, appearing for the respondents, contended that exemption Notification 68/87 cannot be equated to a charging section and it cannot be construed to mean that goods thereunder should be charged to 15%. When nil duty exemption is available under Central Excise Notification, that should be applied. The Ld. Consultant, further, pointed out that Notification 71/86 exempts parts of cinematograph projectors other than, projector heads; arc lamps & sound heads from duty totally which are falling under Chapter 85 or 90. When Central Excise Duty is nil on the goods, which have been assessed under Chapter 90 for Central Excise purposes, no CVD can be levied thereon by invoking Notification 68/87. 4. Submissions mad....

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....ustoms Tariff Act, 1975 has to be read with that of Central Excise Act and the liability to levy the countervailing duty depends upon the fact as to whether such article is liable to pay excise duty. The Court also held that no countervailing duty can be levied on an article, if such an article manufactured in India is exempt from the payment of excise duty. Thus, it is clear from the above that for determining the measure of additional duty what is required to be found out is the excise duty for the time being leviable on a like article which can only be found under the Central Excise Tariff read with relevant Notification issued thereunder and not with reference to Notification under Section 25 of the Customs Act. Viewed in this light, th....