MRF Limited Vs Commissioner of Customs (CESTAT Chennai)
The case concerns the levy of Additional Duty of Customs under Section 3(1) of the Customs Tariff Act, 1975 on imported natural rubber and the challenge to such levy before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai. The appellant had imported natural rubber classified under CTH 40012200 and filed Bills of Entry for its clearance. The Revenue issued a show cause notice demanding cess amounting to ₹46,94,700 along with interest under Section 28AB of the Customs Act, 1962. The demand was confirmed by the Original Authority and upheld by the Commissioner (Appeals), leading to the present appeal.
The appellant argued that the issue was settled by earlier judicial decisions, including rulings of the Tribunal and affirmations by the Supreme Court, which according to them supported their position. It was contended that cess under Section 12 of the Rubber Act, 1947 is leviable only on rubber produced in India and not on imported rubber. Further, it was submitted that additional duty under Section 3(1) of the Customs Tariff Act applies only to duties equivalent to excise duty on similar goods manufactured in India, and therefore, the levy of cess on imported rubber was not justified. The appellant also challenged reliance on the Larger Bench decision in TTK-LIG Ltd., arguing that it did not follow earlier Supreme Court decisions.
