INDIAN CABLE CO LTD Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) The Indian Cable Co. Ltd. being aggrived by various assessment made by the Collector of Customs on 3rd of 3une, 1981, 16th of July, 1981, 5th of August, 1981 and 17th of September, 1981 under Tariff Item No. 39.01/06 of the Customs Tariff Act and under Item 5-A of the Central Excises and Salt Act, 1944 had moved the Writ Jurisdiction of this Court for necessary reliefs.

(2.) In connection with its business of manufacturing various kinds of electrical cables and wires the Petitioner had to import amongst other synthetic rubber sold under the trade name "Hypalon" which is used for insulating wires and cables. According to the Petitioner, the said Hypalon is manufactured in U.S.A. and sold by them throughout the world as synthetic rubber. The Petitioner contended that the Hypalon is in fact a form of synthetic rubber. The Petitioner in that respect craved reference to certain technical literature and specifications. In the Import Trade Policy for the year 1977-78 till 1980-82 the Govt. of India through the Ministry of Commerce included Hypalon under the description Scientific rubber relying upon the Import Trade Control Classification passed on Brussels Trade Nomenclature. Prior to 1979 for the purpose of importation of Hypalon one had to apply for an import licence from the Chief Controller of Imports and Exports as a result the Petitioner had applied and obtained licence from time to time from the competent authority and hypalon had been imported by virtue of such licence which was cleared by the Customs Authorities, under the description Synthetic rubber. The Petitioner further stated that the Customs Authorities at Madras by their order dated 26th November, 1976 had been pleased to hold Hypalon as synthetic rubber. Even the Appellate Collector of Customs, Calcutta by order dated November 6, 1980 in respect of a consignment of Hypalon imported by the Petitioner had been pleased to hold the same as synthetic rubber which of course is pending by way of review before the Govt. of India. In cases of customs duty on synthetic rubber there in heading No. 40.01/CM whereunder raw rubber, natural or synthetic etc. duty has been imposed at 40% and for additional duty it is assessable under the Central Excises and Salt Act, 1944 undet Item No. 16-AA upon which 10% ad valorem duty is leviable on synthetic rubber etc. Over and above auxiliary duty at the rate of 10% ad valorem and special duty at 10% by way of additional duty is leviable.

(3.) The Petitioner is aggrieved in as much as the Customs Authorities had contended and assessed Hypalon as a synthetic resin under the heading 39.01/06 at 100% Ad valorem + Auxiliary Duty at the rate of 25% Additional Duty at the rate as provided under the Central Excise Tariff Item 15-A(40% + 5% Special Duty).