Shivam Engineering Company Vs. Union of India [2014-TIOL-1563-HC-AHM-CUS]
In the instant case, Shivam Engineering Company (the Petitioners) have filed a writ petition before the Hon’ble Ahmadabad High Court requesting to prohibit the Revenue from levying Additional Duty of Excise (CVD) under Section 3(1) of the Customs Tariff Act, 1975 (the Customs Tariff) as per the rates prescribed under Heading No. 89.08 of the Central Excise Tariff Act, 1985 (the Excise Tariff). Heading 89.08 of the Excise Tariff covers vessels and other floating structures for breaking up.
The Hon’ble High Court has placed reliance on the judgment of Hyderabad Industries Ltd. Vs. Union of India [2002-TIOL-369-SCCUS-CB], wherein the Hon’ble Supreme Court had held that when articles which are not produced or manufactured cannot be subjected to levy of Excise duty, then on the import of like article, no CVD can be levied under the Customs Tariff. The Hon’ble High Court further observed that import of vessels and other floating structures for breaking up does not constitute manufacture in India, so no Excise duty is leviable in India. Accordingly, it has been held that no additional duty is leviable on the vessels and other floating structures imported into India for breaking up, under section 3(1) of the Customs Tariff, as per the rate prescribed under Heading No.89.08 of the Excise Tariff.
(Bimal Jain, FCFCS, LLB, B.Com (Hons), Mobile: +91 981060456A, 3, Email: email@example.com)