2025 (4) TMI 1020

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....ess of import and manufacture of medical equipments and sale of such equipments in India. Petitioner had imported and warehoused one consignment of Hemato Analyser with standard accessories and filed bills of entry. Respondent No.2, i.e. Commissioner of Customs assessed the bills of entry and demanded additional duty at 4% in terms of Notification No.19/2005-Cus dated 01.03.2005 issued by respondent No.1, i.e. Union of India. 3. Respondent No.2 demanded additional duty on the ground that as per the Notification No.19/2005-Cus dated 01.03.2005, the goods covered under the exemption Notification No.24/2005-Cus dated 01.03.2005 are liable to pay additional duty at the rate of 4%. The goods imported by petitioner fell under the Customs Tariff ....

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....in column (2) of the Table below, when imported into India, from the whole of the duty of customs leviable thereon under the said First Schedule, namely:- Table S.No. Goods falling under the Heading, Sub-heading of Tariff item (1) (2)   ... 4 ... 9027 80 ...   ... The Notification No.19/2005 reads as under: "In exercise of the powers conferred by sub-section (5) of section 3 of the Customs Tariff Act, 1975 (51 of 1975), as amended by clause 72 of the Finance Bill, 2005, the clause which has, by virtue of the declaration made in the said Finance Bill under the Provisional Collection of Taxes Act, 1931 (16 of 1931), the force of law, the Central Government, on being satisfied that it is necessary in the public inter....

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....signifies is what is the rate of duty that will be levied on goods imported into India. Section 2 of the Customs Tariff Act, 1975 provides the rates at which duties of customs shall be levied under the Customs Act, 1962 and are specified in the First and Second Schedules. Notification No.19/2005 has been issued in exercise of the powers conferred by Subsection (5) of Section 3 of the Customs Tariff Act, 1975 and in the table it only indicates the description of goods that shall be liable to additional duty at 4% ad valorem. That has nothing to do with Section 25 of the Customs Act. It does not mean that where goods are allowed to be imported free of customs duty, Government of India is not empowered under Section 25 of the Customs Act, 1962....

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....identified goods when imported into India shall be liable to an additional duty at 4% ad valorem. 12. In our view, the goods imported, even though exempted from basic customs duty, may still be subject to levy of additional duty under the respective enactments and they would be so subject unless and until they are specifically exempted by the competent authority in exercise of the powers vested under those respective enactments from such additional duty. 13. Shri Hari Radhakrishnan relied upon a judgment of the Apex Court in the case of Associated Cement Companies Ltd. v. Commissioner of Customs 2001 (128 ELT 21 (SC). In our view, this judgment is of no help because it does not apply to the facts of this case. In that case, the Court held....