SUPER CASSETTES INDUSTRIES LTD. Vs. CC

JUDGEMENT

(1.) THESE two appeals which raise identical questions and filed by the same appellants were heard together and are being disposed of by this common order.

(2.) APPELLANTS are manufacturers of Audio/Video Magnetic Tapes falling under Chapter heading 85.23 of the Central Excise Tariff Act, 1985. For this purpose they import various types of Rolls, viz, Calender Rolls, Rubber Rolls, Video Applicator Rolls, Doctor Rolls and Audio Applicator Rolls. The process of manufacture involves mixing of chemicals into a slurry which is then coated on bare Polyster film in the coating and calendering machine. Due to constant use the Rolls get damaged requiring repairs and reconditioning. Appellants sent 10 pieces of Calender Rolls abroad for repair and re -conditioning vide Shipping Bills No. 8249 dated 10.12.92 after obtaining a certificate from DGTD to the effect that the same repairs cannot be undertaken in India. The repaired rolls were re -imported into India by appellants on 7.9.93 vide Bill of Entry Nos. 109401 and 109402 and they claim the benefit of Notification No. 204/76 as amended for basic customs duty. They also claimed nil rate of Additional duty of customs on the ground that the same is not chargeable under Section 3 of the Customs Tariff Act. The Assistant Collector of Customs, I.C.D., Tuglakabad, New Delhi did not accept the plea. Appellants therefore cleared the goods covered by Bill of Entry No. 109401 on payment of Additional Duty of Rs. 20,479.10 under protest. Similarly, goods covered by Bill of Entry No. 109402 were cleared after paying Rs. 47002.30 as Additional Duty under protest.

(3.) ON the direction of the Collector (Appeals), appellants sought a speaking the appealable Adjudication Order from the Assistant Collector. After affording personal hearing the Assistant Collector passed Order -in -Original dated 7th April 1994 on claims arising from both the Bills of Entry. He rejected the present Appellants plea that Additional Duty of Customs was not chargeable in their case. In Appeal, Collector (Appeals), New Delhi rejected their Appeal and confirmed the Order -in -Original passed by Assistant Collector.