BALLARPUR INDUSTRIES LIMITED Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) The petitioner carries on business of the import of brass scraps in the state of Maharashtra. Such brass scraps imported by the petitioners have various trade names "Honey", "Abony", "Pales" and various other names. The customs duty under the provisions of the Customs Act, 1962 is leviable on import of brass scrap at such rate as may be specified in the Customs Tariff Act.

(2.) Chapter 74 of the First Schedule to the Tariff Act provides for rates of duty on import of copper and other articles thereof. It was contended by the petitioner that the Brass Scrap imported by them is master alloy and is covered by Heading No. 74.01/02 of Chapter 74 of the First Schedule.

(3.) The petitioner entered into a contract on 15th of February, 1982 with Phibro Asia Ltd. of America to buy approximately 60 short tons of Brass Scrap confirming two Nari Specification Abony at 72 U.S. Cents per pound C.I.F. Calcutta. Pursuant to the said contracts the goods arrived at Calcutta on board the Vessel 'Tulsidas'. The goods arrived in lots and under different bills of lading. On 27th February, 1982 the petitioner entered into another contract with Phibro Asia Ltd. to buy approximately 108 mt. tonnes of brass scrap conforming of Nari Specification Honey at 52 U.S. Cents per pound C.I.F. Calcutta. Pursuant to that contract those goods arrived at Calcutta on board the Ship 'Biswa-parimal'. The said goods arrived in lots under different bills of lading. The petitioner wishes to clear the said goods for home consumption in respect of one lot of goods. The customs authorities made assessment on the said bill of entry according to the petitioner illegally by leaving auxiliary duty at the rate of 35% ad valorem. Although according to the petitioner Section 44, Sub-section (1) of the Finance Act, 1982 provides that in case of goods mentioned in the First Schedule as amended from time to time there shall be levied and collected as auxiliary duty of customs equal to 30% of the value of the goods as determined in accordance with the provisions of the Customs Act whereas the Customs authorities had levied an auxiliary duty of 35% on the brass scrap imported by petitioner. Hence, the petitioner contended that such levy was unlawful and not in accordance with law. By notification dated 28th February, 1982 bearing No. 60/82 as amended by notification dated 1st March, 1982 bearing No. 79/82 the Central Government exempted the goods which are partially or wholly exempt from the duty of customs specified in the First Schedule to the Customs Tariff Act, 1975 by virtue of notification of the Government of India, Ministry of Finance or the Department of Revenue and Banking from the whole of the auxiliary duty of customs leviable on such goods under Sub-section (1) of Section 44 of the Finance Act, 1982. Hence, the petitioner contended that the goods so imported by, the petitioner will exempt from the whole of the auxiliary duty of customs leviable on such goods under Sub-section (1) of Section 44 of the Finance Bill 1982.