CEAT LTD. Vs. COMMISSIONER OF CUSTOMS, BANGALORE

JUDGEMENT

(1.) FOR the purpose of hearing the appeal, the appellants is required to pre -deposit duty of Rs. 5,64,795/ - . The question that arises for consideration in the appeal is as to whether cess is leviable on imported natural rubber. The learned Counsel has filed a set of citations wherein the Tribunal has held that cess is not leviable on imported rubber, while learned DR relied on leviability of cess in respect of imported textile machinery and submits that the ratio could be applied to the present case. The learned DR points out that all the citations relied on the Circular issued by the Board which has since been withdrawn and therefore the cess is leviable. Learned Counsel submits that natural rubber is not manufactured in India and there is no excise duty. Therefore, the question of levying cess does not arise.

(2.) ON a careful consideration we find force in the submissions made by learned advocate in the light of judgments which are in his favour. Therefore the stay application is allowed unconditionally granting wavier of pre -deposit and staying the recovery of the amount till the disposal of the appeal. Appeal to come up in its turn.