TaxTMI 
TaxTMI 
1999 (8) TMI 68
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.... additional duty under Section 3 of the Customs Tariff Act was sought to be imposed. The contention of the appellants before the authorities was that polyvinyl alcohol when manufactured in India from Vinyl acetate monomer, on which appropriate amount of duty has been paid, is subjected to a concessional rate of excise duty of 10% ad valorem, instead of the normal duty of 40%, and, therefore, the appellants should also be required to pay the additional duty at this reduced rate. 3.When the case came up for hearing before the CEGAT, it came to the conclusion that the appellants were not entitled to the benefit of the notification whereby reduced rate of duty could be paid. It was held by the Tribunal that Excise Notification of Exemption c....
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....d at the rate of ten per cent ad valorem. Provided that such Polyvinyl Alcohol is manufactured from Vinyl Acetate Monomer on which the appropriate amount of the duty of excise under Section 3 of the said Central Excises and Salt Act or the Additional duty under Section 3 of the Customs Tariff Act, 1975 (51 of 1975), as the case may be, has been paid. This notification shall be in force upto and inclusive of the 30th day of September, 1983." 6.It was submitted by Shri Dipankar P. Gupta as well as Shri Prashant Bhushan and other Counsel appearing on behalf of the appellants that in India there was only one manufacturer of polyvinyl alcohol and this commodity can be produced only from vinyl acetate monomer and this Indian manufacturer....
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...., the condition for getting the benefit of the lower rate of duty is that on the raw material used appropriate amount of duty has been paid here. If per chance or for any reason, the manufacturer of polyvinyl alcohol in India is unable to prove or show that the same has been manufactured from vinyl acetate monomer on which appropriate amount of duty of excise has been paid, then the said manufacturer would not be entitled to get the benefit of the said notification. That in fact the sole Indian manufacturer may have been able to prove in every case that appropriate duty-paid raw material has been used in the manufacture of polyvinyl alcohol, does not mean that the requirement of proving the same is dispensed with. 10.It is, no doubt, tru....
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....n paid. Similarly an importer of polyvinyl alcohol would be required to pay under Section 3 duty at the rate of 40% because on the polyvinyl alcohol imported duty under Section 3 of the Central Excises and Salt Act or additional duty under Section 3 of the Customs Tariff Act has not been paid on the vinyl acetate monomer used in the manufacture of polyvinyl alcohol. If it was possible to have shown that duty-paid vinyl acetate monomer had been used in the manufacture of imported polyvinyl alcohol, then the benefit of Excise Notification No. 185 of 1983 would have been available. It is possible that vinyl acetate monomer manufactured in India is exported and the same is used in the manufacture of polyvinyl alcohol which, in turn, is imported....