SHIVAM ENGINEERING COMPANY Vs. UNION OF INDIA

JUDGEMENT

(1.) AS common question of facts and law arise in this group of petitions, all these petitions are disposed of by this common judgment and order.

(2.) IN all these petitions, the respective petitioners have prayed for appropriate writ, order and/or direction striking down heading No. 89.08 of the Central Excise Tariff Act, 1985 (5 of 1986) as unconstitutional and ultra vires Entry No. 84 of the Union List of the Seventh Schedule to the Constitution of India and also ultra vires Articles 14 and 19 of the Constitution of India.

(3.) MR . Paresh Dave, learned advocate appearing on behalf of the petitioners has vehemently submitted that as per section 3 of the Act, 1985, in addition to the Basic Duty of Customs, an importer is also liable to pay a duty (additional duty) equal to the excise duty for the time being leviable on a like article if produced or manufactured in India. It is submitted that the words "equal to excise duty" as appearing in section 3(1) of the Act, 1985, thus, provide a measure of additional duty. It is submitted that for the purpose of such measure, the respondents press into service heading No. 89.08 of the Schedule to the Central Excise Tariff Act, 1985 which covers vessels and other floating structures for breaking up. It is submitted that there is no dispute on the fact that the imported goods in addition to the Basic Duty be liable to the additional duty under section 3(1) of the Act, 1985 which would be equal to the excise duty for the time being leviable on a like article if produced or manufactured in India. It is submitted that, therefore, additional duty could be levied and recovered only as per the rates prescribed under the tariff for the like article if produced or manufactured in India.