TaxTMI 
TaxTMI 
1999 (12) TMI 61
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Customs at Kandla dated 26-2-1975. 2.It was contended before the High Court that the appellant manufactures chemical fertilizer and other allied products in its factory at Kalol and new Kandla Port in the State of Gujarat. It is also stated that for the purpose of manufacture of chemical fertilizers, the appellant imports "phosphoric acid" for use in the manufacture of Nitrogen phosphorous potash, and by the impugned order the respondents had levied auxiliary duty of customs at the rate of 15 per cent purporting to levy the same under Clause 1 of Notification No. 14, dated 1-3-1974 issued by the Central Government in exercise of its power under Section 25(1) of the Customs Act, 1962 read with Clause 19(4) of the Finance Bill, 1974. The ap....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tioned in the first Schedule to the Act, from so much of the auxiliary duty as is in excess of the rate specified in column 3 of the said Table. The relevant part of the Notification is as under :- Sl.No. Description of Goods Rate of auxiliary Duty of Customs (1) (2) (3) 1. Goods in respect of which the rate of duty of customs specified in the said First schedule read with any relevant notification of the Government of India for the time being in force, is 60 per cent ad valorem or more but less than 100 per cent ad valorem. Fifteen per cent of the [value of the] goods as determined in accordance with the provisions of Section 14 of the Customs Act, 1962 (52 of 1962). 2. Goods in respect of which the rate of duty of customs speci....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he First and Second Schedules of the Indian Tariff Act, 1934 are required to be levied. This is provided in Section 2 of the Indian Tariff Act. The said Act empowers the Central Government for levy of preferential rates of duties and protective rates of duties. For the import of phosphoric acid, Tariff Item is 28(16) which provides the standard rate of duty if it is imported from Burma at 10% ad valorem. Pursuant to the power vested in it under Section 26 of the Act, the Central Government by Notification dated 28-4-1969 has exempted phosphoric acid falling under Item 28(16) when imported for the manufacture of fertilizer so much of that portion of the duty of customs leviable thereon which is in excess of 30% ad valorem. Therefore, for pho....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cturing Co. Ltd. [1989 (44) E.L.T. 595] wherein while considering the levy of auxiliary duty on the import of timber from Burma, this Court held thus :- "When different rates slab of the auxiliary duty under an Exemption Notification are provided based on the effective rate of Basic customs duty and the Explanation thereto provides in case of two or more rates of Basic duty in relation to an Article because of the reasons of the country of origin, the rate of auxiliary duty is to be fixed as per the highest rate of Basic duty, the reference to the two or more rates of Basic duty does not confine to two effective rates under two Exemption Notifications but would also include one effective rate under Exemption Notification and the other rate....