1990 (2) TMI 60

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....oms Tariff Act, 1975. The goods were charged to duty at the rate of 60% ad valorem basic customs duty plus 40% ad valorem auxiliary duty plus 15% ad valorem additional duty. The additional duty was levied under Section 3(1) of the Customs Tariff Act. 2. The petitioners claim that levy of additional duty was contrary to law in view of Notification No. 71/86 dated February 10, 1986 as amended by Notification No. 164/86 dated March 1,1986. The petitioners preferred refund applications in respect of levy of additional duty before the Assistant Collector of Customs on April 11, 1987. The applications for refund were rejected by the Assistant Collector of Customs, Air-cargo Complex, Bombay by various orders holding that the refund claims were ....

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....  - Other drawing, marking-out or mathematical calculating instruments."  60% The exemption notification was issued in exercise of powers conferred by sub-rule (1) of Rule 8 of the Central Excise Rules, 1944 by the Central Government and inter alia provides that the duty of excise leviable on the goods stands exempted in respect of description of goods set out in the table annexed to the notification. Item 8 of the table refers to Chapter Heading 90.17 and the description of the goods is "drawing and mathematical instrument. In respect of import of this item the exemption notification provides that the duty would be 'nil'. Shri Nankani submits that in face of this notification it was not open for the Department to recover addit....

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.... the other while levying duty on the imported items. The falacy of submission advanced by Shri Devadhar becomes evident by perusal of Heading 98.06 of the Tariff Item. This heading deals with parts of machinery, equipments, appliances, instruments and articles of Chapters 84, 85, 86, 89 and 90. The bare perusal of this heading makes it clear that accessories or spare parts of heading covered under Chapter 90 would be liable to duty under Heading 98.06 and not under Heading 90.17. The Department did not treat the items imported by the petitioners as parts of machinery or articles falling under Chapter 90 and therefore it is not now permissible for the Department to claim that what was imported by the petitioners are merely parts of drawing i....