LexJAIN BROTHERS AND ANR. versus UNION OF INDIA AND ORS.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
A
JAIN BROTHERS AND ANR.
v.
UNION OF INDIA AND ORS.
JULY 21, 1999
B
[B.N. KIRPAL, M. SRINIVASAN ANDS. RAJENDRA BABU, JJ.].
Customs Tarrif Act, 1975:
S.3 (2)-Imported article-Levy of additional duty equal to excise
C duty-Inclusion of Customs duty in calculating the value of imported article
for purposes of levy of additional duty-Held, the provision is not
unconstitutional nor ultra vires-Customs Act, I 962-S. I 2.
D
Hyderabad Industries Ltd. and Anr, v. Union of India and Ors.,
(1999)(108) ELT 321, distinguished.
J.K. Synthetics Ltd. etc v. Commercial Taxes Officer etc., (1994) 94 STC
422 and Union of India and other etc. etc. v. Bombay Tyre International Ltd.
and etc. etc. AIR, (1984) SC 420, not applicable.
CIVIL ORIGINAL JURISDICTION : Writ Petition (C) No. 5308
E of 1983.
Under Article 32 of the Constitution of India.
S.K. Dholakia, Dushyant Dave, C.S. Vaidyanathan, H.A. Raichura, N.D.
Garg, Kailash Vasdev, (Rahul Roy), for P.H. Parekh, Ashok K.Mahajan, Ramesh
F Singh, Siddhartha Goswami, Ms. Vanita Bhargava, Ashok Kumar Gupta Ms.
G
Bina Gupta, (Vineet kumar) (NP) MusharafChoudhary N.K. Bajpai Dilip Tandon,
K.C. Kaushik, P. Parmeswaran, A. Sobba Rao and Ms. Sushma Suri for the
appearing Parties.
The following Order of the Court was delivered :
The challenge in this writ petition is to the provisions of Section 3 of
the Customs Tariff Act, 1975.
The petitioners are engaged in the business of import of automobile
H spare parts. They are liable to pay customs duty as levied under Section 12
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JAIN BROTHERS v. U.0.1.
1027
of the Customs Act, 1962 which provides that the Customs duty will be levied A
at such rates as may be specified under the Customs Tariff Act, 1975.
The Customs Tariff Act, 1975 (hereinafter referred to as "the Act")
provides for levy of additional duty under Section 3 which Section reads as
follows:
"3. levy of additional duty equal to excise duty.-{l) Any article
which is imported into India shall, in addition be liable to a duty
(hereinafter to this section referred to as the additional duty) equal to
the excise duty for the time being leviable on a like article if produced
B
or manufactured in India and if such excise duty on a like article is C
leviable at any percentage of its value, the additional duty to which
the imported article shall be so liable shall be calculated at that
percentage of the value of the imported article.
Exp/anation.-ln this section, the expression "the excise duty for the
time being leviable on a like article if produced or manufactured in D
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.
E
(2) For the purposes of calculating under this section the additional
duty on any imported article, where such duty is leviable at any
percentage of its value, the value of the imported article shall,
notwithstanding anything contained in Section 14 of the Customs
Act, 1962 (52 of 1962), be the aggregate of-
F
(i) the value of the imported article determined under sub-section
( 1) of the said Section 14 or the tariff value of such article fixed
under sub-section (2) of that section, as the' case may be; and
(ii) any duty of Customs chargeable on that article under Section 12 G
of the Customs Act, 1962 (52of1962), and any sum chargeable
on that article under any law for the time being in force as an
addition to, and in the same manner as a duty of Customs, but
not including the duty referred to in sub-section (1 ).
(3) If the Central Government is satisfied that it is necessary in the H
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SUPREME COURT REPORTS
[1999) 3 S.C.R.
public interest to levy on any imported article (whether on such article
duty is leviable under sub-section (1) or not) such additional duty as
would counter-balance the excise duty leviable on any raw materials,
components and ingredients of the same nature as, or similar to those,
used in the production or manufacture of such article, it may, by
notification in the Official Gazette, direct that such imported article
shall, in addition be liable to an additional duty representing, such
portion of the excise duty leviable on such raw materiExcerpt shown. Read the full judgment & AI analysis in Lexace.