Midas Treads (India) Pvt Ltd Vs Commissioner of Customs (CESTAT Bangalore)
CESTAT Bangalore held that no excise duty is leviable on the subject goods i.e. [imported ‘Insoluble Sulphur’] and therefore no additional duty will be levied. Accordingly, levy of CVD @10% unsustainable.
Facts- The Appellant had imported ‘Insoluble Sulphur’ under bill of entry No. 6108813 dated 27.02.2012. At the time of filing the bill of entry, the excise duty was ‘Nil’ as per Chapter 25 of the Central Excise Tariff Act, 1985 for the goods classifiable under Customs Tariff Item entry 25030090. Accordingly, the Appellant filed the bill of entry. However, the assessing authority assessed the bill of entry to 10% CVD at the time of clearance of the goods. Commissioner (Appeals) dismissed the appeal. Aggrieved by the order of Commissioner (Appeals), present appeal is filed.
Conclusion- Held that at the time of import of the goods, appellant had made true declaration regarding classification under Customs Tariff item entry 25030090 and value declared by the Appellant was also accepted by the Department. As per Section 3(1) of the Customs Tariff Act, any article which is imported into India, shall in addition to the duties of customs levied under the Customs Act, be liable to a duty equal to the excise duty for the time being leviable on the like articles produced or manufactured in India. As per the Central Excise Tariff Act, 1985, against the subject Central Excise Tariff item entry 25030090 rate of duty is ‘NIL’. Therefore, no excise duty is leviable on the subject goods and there is no additional duty that the goods can be made liable to. However, without specifying any reason, assessing authority had levied CVD @ 10% for the goods, which are subject to ‘Nil’ rate of duty.
