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2018 (1) TMI 438
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.... on which additional duty of custom equivalent to duty of excise under Section 3(1) of the Customs Tariff Act, 1962 was paid at the concessional rate of duty at 8% adveloram in terms of notification No.29/2005- CE as amended. For easy reference the relevant notification is reproduced below; (1) (2) (3) (4) "5A 54 All filament yarns procured from outside and subjected to any process by a manufacturer who does not have the facilities in his factory (including plant and equipment ) for the manufacture of filament yarns of Chapter 54. Explanation For the purpose of this exemption, manufacture of yarns means manufacture of filaments of organic polymers produced by,- (a) Polymerization of organic monomer....
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....er charges. - (1) Any article which is imported into India shall, in addition, be liable to a duty (hereafter in this section referred to as the additional duty) equal to the excise duty for the time being leviable on a like article if produced or manufactured in India and if such excise duty on a like article is leviable at any percentage of its value, the additional duty to which the imported article shall be so liable shall be calculated at that percentage of the value of the imported article: Provided that in case of any alcoholic liquor for human consumption imported into India, the Central Government may, by notification in the Official Gazette, specify the rate of additional duty having regard to the excise duty for the time....
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.... from outside. (ii) Yarns so procured should be subjected to any process by the manufacturer (iii) Such manufacturer does not have the facility (for manufacture of filament yarn of chapter 54) (iv) The resultant goods emerging out of the process so subjected to will also fall under Chapter 54. 4.6 With regard to the requirement that the filament yarn should be procured from outside , neither the said notification nor the Central Excise Act or Rules define the words procured from outside . This being so, the commonly understood connotation of the word, in its most literal sense, will require to be adopted and understood accordingly. There is no requirement in the notification that filament yarn should be" ....
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....ailing of Entry 5A of the notification also will not be eligible to avail of the 8% duty liability extended therein. 4.11 In the instant case, the imported nylon filament yarn is being used as an input by the importer, in their own factory for subjecting to some process. This being so, it is only the resultant of the imported yarn after such processing in the factory, provided further that such resultant goods also fall under Chapter 54, that will attract the benefit of reduced 8% duty liability under Entry 5A of the Notification. 4.12 Additional duty of customs on the imported will necessarily be on par with the excise duty leviable on a like article produced / manufactured in India. This being so, the additional duty of ....
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....iable under Section 3(1) of the Customs Tariff Act, it has to be imagined that the articles imported had been manufactured or produced in India and then to see what amount of excise duty was leviable thereon." 4.15 In the case of M/s. Vareli Weaves Pvt. Ltd. Vs. UOI - 1996 (83) E.L.T. 255 (S.C.), Hon'ble Court unequivocally held that the countervailing duty must be levied only in the state in which they are when imported. The relevant portion of the judgment is reproduced as under:- "6. Countervailing duty must be levied on goods in the state in which they are when they are imported. Section 3 of the Customs Tariff Act so mandates. The POY imported by the appellants fell in the slot of 100 deniers and above but not above 7....