COLLECTOR OF CUSTOMS Vs. IM KEMEX INDIA LTD.

JUDGEMENT

(1.) THIS is an appeal filed by the department against the order -in -appeal dated 28 -2 -1985 passed by the Collector (Appeals), Customs House, Madras.

(2.) THE respondents have claimed refund of additional duty paid on the ground that as per Notifications 33/81 and 35/81, dated 1 -3 -1981, Copper scrap produced in India has been exempted from payment of duty arid no additional duty is leviable on the imported goods. This claim has been rejected by the Asstt. Collector. On appeal filed by the party, the Collector (Appeals) has accepted the contentions of the party while allowing the appeal. The main plea put forth by the appellants before the Collector (Appeals) is that these types of scraps are not manufactured articles and therefore did not come within the purview of the Central Excise duty. It was also explained by them that persons who are gathering, sorting and grading worn out used materials such as these do not require Central Excise Licence and their product cannot attract Central Excise duty.

(3.) SHRI G.D. Sharma, ld. JDR appearing for the Revenue while explaining the scope of Section 3 with reference to levy of Customs duty submitted that in the Explanation to Section 3 the expression 'the excise duty for the time being leviable on a like article if produced or manufactured in India' means the excise duty for the time being in force which would be leviable on a like article if produced or manufactured in India or, if a like article is not so produced or manufactured, which would be leviable on the class or description of articles to which the imported article belongs, and where such duty is leviable at different rates, the highest duty. Referring to the decision of the Hon'ble Supreme Court in the case of Khandehval Metal and Engineering Works v. UOI and Ors. reported in 1985 (26) E.L.T. 222 (S.C.), he submitted that the additional duty of customs as referred to in the Sections 2 and 3 of the Customs Tariff Act is not a countervailing duty and for the purpose of levy of additional duty of customs, the concept of manufacture is irrelevant and accordingly the levy of additional duty of customs on the brass scrap cannot be questioned on this ground.