2013 (11) TMI 1523

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.... applicant manufactures one of the products as Praziquental Tablets 600 mg, for which applicant has imported the basic raw material Praziquental USP. At the time of import of this raw material, the applicant have paid 4% Additional Customs Duty leviable under Section 3(5) of the Customs Tariff Act, 1975 along with other Customs Duties payable. The imported raw material was used in the manufacture of final product Praziquental Tablets 600 mg which is exempted from payment of Excise duty. The applicant have exported the final product and filed rebate claim for input stage rebate under Notification No. 21/2004-C.E. (N.T.), dated 6-9-2004. This claim includes 4% Special Additional Customs Duty paid at the time of import of said raw material alo....

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....i) xx xx xx   (ii) xx xx xx   (iii) xx xx xx   (iv) xx xx xx   (v) xx xx xx   (vi) xx xx xx   (vii) xx xx xx   (viia) The Additional Duty leviable under sub-section (5) of Section 3 of the Customs Tariff Act." 4.2 Commissioner (Appeals) in Paragraph 5.2 of its order has held that a additional duty of Customs leviable under Section 3(5) of the Customs Tariff Act, 1975 is not included in the specified duties of Excise, under explanation to Para (6) of the Notification No. 21/2004-C.E. (N.T.), dated 6-9-2004. As per sub-para (2) of the Explanation "Additional duty leviable under Section 3 of the....

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.... 4.4 The applicant relies upon a judgment of this Authority given in the case of M/s. Om Sons Cookware Pvt. Ltd. reported in 2011 (268) E.L.T. 11 (G.O.I.). The facts of the applicant's and of M/s. Om Sons Cookware Pvt. Ltd. are identical and similar. 5. Personal hearing was scheduled in this case on 7-12-2012, 20-2-2013 and 15-10-2013. Nobody attended hearing from either sides. Hence Government proceeds to decide the case on merits on the basis of available record. 6. Government has carefully gone through the relevant case records and perused the impugned Order-in-Original and Order-in-Appeal. 7. Government observes that the applicant imported raw material viz. Praziquental USP on payment of 4% SAD leviable unde....

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....cle on its sale, purchase or transportation in India, it may, by notification in the Official Gazette, direct that such imported article shall, in addition, be liable to an additional duty at a rate not exceeding four per cent, of the value of the imported article as specified in that notification." From perusal of above position, it is clear that SAD is levied on imported goods to counter balance the sales tax, value added tax, local tax, etc., which cannot be considered as duty of excise for being eligible for rebate benefit. Further, SAD collected under Section 3(5) is not classified as a duty in list of duties provided in Explanation-1 of the Notification No. 21/2004-C.E. (N.T.). Hence, such payment of SAD is not eligible for rebate ....