TaxTMI 
TaxTMI 
2005 (4) TMI 522
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....ssional rate of duty on the imported waste paper under Notification No. 16/2000-Cus., dated 1-3-2000 and 17/2001-Cus., dated 1-3-2001 on furnishing an undertaking that the imported goods will be used for manufacture of paper. The End Use certificates submitted by the importer in respect of disputed four bills of entry indicated that the waste paper was used for manufacture of board only. This was also confirmed by the Central excise record that only paper board was manufactured and cleared and thus, the imported waste paper was not used for the intended purpose and the importer was called upon to pay the differential duty. However, show cause notice was dropped by Commissioner on the ground that Notification No. 56/2002-Cus.(N.T.), dated 26....
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.... 16/2000-Cus. and 17/2001-Cus. which are basic Customs duty and the additional duty of Customs (CVD). It does not refer to other duties of Customs like surcharge on basic Customs duty and the special additional duty of Customs (SAD). Therefore, the order of the Commissioner relating to dropping of demand of Rs. 27,394/- on account of surcharge on basic Customs duty and Rs. 98,722/- on account of additional duty of Customs, should be set aside and suitable action may be taken against the respondents. 4. In their Cross-Objections, the respondents had submitted that during the period from 1-3-2001 to 22-10-2001, all the imported goods were exempt from payment of surcharge Notification No. 26/2001-Cus., dated 1-3-2001. During the material....
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....ording to practice generally prevalent in the trade, the waste paper was also being allowed to be imported at concessional rate of duty if the same was used in manufacture of paper board as well. Thus, there has been no mis-statement or suppression of facts or wrong declaration on the part of the respondents. 5. We have considered the submissions made by both sides. We find that the departmental's appeal is for levy of surcharge on basic Customs duty and special additional duty of Customs (SAD). We find that the respondents had imported waste paper at a concessional rate of duty for use in the manufacture of paper. However, instead of manufacturing paper, they manufactured paper board. We find that under Notification No. 26/2001-Cus.,....