TaxTMI 
TaxTMI 
2013 (3) TMI 67
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....d the following articles :- * Empty Zinc Tube (classifying under sub-heading 8506 90 00 of the Customs Tariff), * Round paper parts (SH : 4811 90 99), * Asphalt Sealing Material (SH : 6807 90 90), * Carbon Rod (2803 00 90), * Round Plastic Ring (SH : 3926 90 99), * Metal Caps (8506 90 00), * Printed Cover (4811 90 99), * Plastic Packing Tube (SH : 3926 90 99), * Packing Material (SH : 3926 90 99), * Empty Cartons (SH : 4819 50 90), * Empty Plastic Bags (SH : 3926 90 99). 5. The petitioner claims that these articles were not dry battery cells but parts or components used for the manufacture of these dry battery cells. The petitioner [in W.P. (C) 4541/2012] imported the above articles through a Bill of entry dated 6-2-2012 along with related import docume....
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....rpretation of the Schedule. It is stated that in terms the insistence upon payment of anti-dumping duty is warranted having regard to the said Rule which reads as follows : "2. (a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled." 9. It was argued in addition that the competent designated authority which went into the issue in depth, examined the issue of the entire process. Particular reference is made to the observations of the designated authority in its findings dated 31-1-2007 which preceded the final notification imposing anti- dumping duty. Counsel for the customs also relied upon the decisions of the Supreme Court reported as Sharp Business Machines Pvt. Ltd., Bangalore v. Collector of Customs, Bangalore - (1991) 1 SCC 154 = 1990 (49) E.L.T. 640 (S.C.) and Commis....
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....), exported by the exporters as specified in the corresponding entry in column (8), imported into India, an anti-dumping duty which shall be equal to difference between the amount mentioned in the corresponding entry in column (9) in the currency as specified in the corresponding entry in column (11) and as per unit of measurement as specified in the corresponding entry in column (10), of the said Table, and the landed value of such imported goods in like currency and like unit of measurement. TABLE Sl. No. Hea-ding Description of goods Specification Country of Origin Country of Export Producer Exporter Am-ount (US $) Unit of measurement Currency (1) (2) (3) (4) (5) (6)) (7) (8) (9) (10) (11) 1 8506 Dry Cell Batteries Zinc Carbon Pencil batteries, R6, AA, UM3, etc. China China Any producer Any exporter 54.59 1000 pieces USD 2 8506 Dry Cell Batteries Zinc Carbon Pencil batteries, R6, AA, UM3, etc. Any country other than China China Any producer Any expo-rter 54.59 1000 pieces USD 3 8506 Dry Cell Batteries Zinc Carbon Pencil ....
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....assembled together, there will be a full and complete machinery." 13. In Phoenix International Ltd. (supra), the mode adopted by the importer, to escape higher levy of customs duty on import of shoes, was to pass off the independently imported components of shoes through two separate sister companies in their unfinished form i.e. shoes uppers for one concern and shoe soles to another concern. The question posed by the Supreme Court was as follows :- "2. The question of law that arises for determination in these civil appeals is :- Whether shoe uppers, outer soles, insoles and sock liners imported by M/s. Phoenix Industries Ltd. (PIND) in the same container could be clubbed so that it could be considered as import of the shoe itself in semi-knocked down (SKD) condition? Whether the importer was guilty of misdeclaration when the importer declared SKD goods as components." The Supreme Court held that the subterfuge was not permissible and the Customs' department's decision that the components were classifiable as 'shoes' was lawful. Its holding is as follows :- "32. In the present case, the Department has alleged that a device was evolved by the....
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....oduction by these entities. It is also not known whether these entities undertake complete production activities, or are producing the product from semi-finished stage. Investigations at the premises of the domestic industry has shown that production of pre-mix powder is the basic manufacturing activity and once the pre-mix powder is prepared, production of the subject goods is just an assembly like operation. Therefore, it could not be established that these producers in the unorganized sector should indeed be considered as "producers" for the purpose of the present investigations. However, the Authority notes that regardless of whether or not their production is considered, production by the participating companies is significantly higher than 50% and it account about 85% of Indian production, even if production by these unorganized sector units is considered as eligible production." 15. However, in the same recommendations the designated authority further recorded as follows :- "E.2 Examination by the authority 16. The argument raised by the domestic industry was examined and it is noted that the anti-dumping duty has been imposed on imports of dry cell b....