MOTIRAM TOLARAM Vs. UNION OF INDIA

JUDGEMENT

(1.) Civil Appeals Nos. 4964-4973 of 1985 (with Civil Appeals Nos. 3006-14/88, 3949/88, 1234-43/90, 3302-06/90, 789-822/91, 823-825/91, 4944-47/90, 2931-32/86, 2933-34/86, 2935-60/86, 3079/88, 1775/89, 352-353/93).

(2.) The appellants imported consignments of polyvinyl alcohol on which 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 Per Cent ad valorem, instead of the normal duty of 40 Per Cent , 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 C. E. G. A. T. , 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 could not apply while determining the duty payable under Section 3 of the Customs Tariff Act. One other reason given by one of the Members of the Tribunal in deciding against the appellants was that the rate which is leviable under Section 3 of the Customs Tariff Act is the one which is provided in the Schedule of the Excise Act and, therefore, if there is any exemption which is granted the same would not be applicable.