TaxTMI 
TaxTMI 
1994 (12) TMI 92
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....ected as provided under the Customs Tariff Act, 1975. 2. Petitioner of Special Civil Application No. 8195 of 1988 contends that an amount of Rs. 30,757.69 ps. (Rupees thirty thousand seven hundred fifty-seven and paise sixty-nine only) has been unlawfully recovered as and by way of cess on textiles. The petitioner of Special Civil Application No. 8196 of 1988 contends that an amount of Rs. 2,70,989.11 ps. (Rupees two lakhs seventy thousand nine hundred eighty-nine and paise eleven only) has been unlawfully recovered in the same way as contended by the petitioner of Special Civil Application No. 8195 of 1988. Further, contention of the petitioners is that under the provisions of the Customs Tariff Act, 1975 levy of additional duty or counte....
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....on textiles manufactured from out of handloom or powerloom industry." The Textile Committee (Cess) Rules defines the term "cess" under Rule 2(c). As per this definition "cess" means the duty of excise leviable under sub-section (1) of Section 5A. In view of the aforesaid provisions of the Act it is contended that by whatever nomenclature it is called, it is in essence the duty of excise. 4. The contention that the Customs Tariff Act, 1985 provides for levy of customs duty and it does not provide for levy of excise duty and, therefore, the imposition of cess which is in the nature of excise duty is illegal and void cannot be accepted. Such a question was raised before the Hon'ble Supreme Court in the case of Khandelwal Metal & Engineering ....
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....into India the provisions of the Customs Tariff Act, 1975 would be attracted. Once the provisions of the Customs Tariff Act, 1975 are attracted to the import of any article, it would become exigible to levy of customs duty, the measure of which would be commensurate with the excise duty leviable on such articles, if manufactured in India. It is not disputed that if polyester filament yarn is manufactured in India it would be subject to excise duty. The basic duty and excise duty is provided under the provisions of the Textiles Committee Act, 1963, i.e., cess on textiles. In view of this position, when polyester filament yarn is imported, the same measure of duty is levied from the importer as provided under the provisions of Section 3 of th....