LexKHANDELWAL METAL & ENGINEERING WORKS AND ANOTHER ETC. versus UNION OF INDIA AND OTHERS
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A B c D E F G H 750 KHANDELWAL METAL & ENGINEERING WORKS AND ANOTHER ETC. v. UNION OF INDIA AND OTHERS June 11, 1985 [Y.V. CHANDRACHUD, C.J., R.S. PATHAK AND SABYASACHI MUKHARJI, JJ.) Customs Act 1962. Section 12 & Customs Tariff Act 1975, Se~tlon 3(1}- "Additiona/ duty'- Whether in the nature of a counter-vai/ing duty-Import of bras1 scrap-Test of taxabilit.r-lmported brass scrap-" like Arlicle if produced or ma11JJ/actured in lndia'-Meaning of-Taxable event ls whether import and not manufactured in India-Whether nature and quality of goods imported relevant- Whether imported brass scrap need be capable of being produced or manufactured in India.....:...Manufacturing process-ivhat is-Being a bye-product of manufactur- ing process-Whether liable to duty-Sections 2. 25, Isl Schedule, (Import Tari.ff') Chapter 14, Heading 74.01/02, RU/es/or interpretation of the Isl Schedule. Rules I lo 4, Notes 2 Section XV of t!te Isl Schedule', Notes 3 and 4-'Copper waste and scrap'-Whether brass scrap is comprehended wilhin the expression and wJ,,ther i.s •master alloy•- whether imported brass scrap entitled to exemption under Notification No. 97 dated June 25 1977. Customs Tariff Act 1975-1 st Schedule (Import Tariff). Chapter 74, Head· Ing 74.01/02-Classiftcatlon of goods under import tariff-Contemporary notifict;- tlon-Whether can be relied upon-Rules of Interpretation-Whether should have precedence over other aids of interpretation-Rules for interpretation of the /st Schedule-Rule.s 1 to 4-Appllcation of. Central Excises and Salt Act 1944, Section 3(1) Schedule I, Ent,y 26A Clause (lb}-Whether ultra vires Section 3(1)-Whether within the legislat/1e comptence of Parliament. / Words and phrases-'Brass Scrap'-•Copper waste and scrap'rMmter al/oy'-Meaning of. Section 2(1.5) of the Customs Act, 1962 defines •"duty'' to mean a duty of customs leviable under the Act. Chapter V of the Act contains provisions for the levy of, and exemption from, customs duties. Bys. 12(1) of the Act. "Except otherwise provided in the Act or in any other Jaw for the time being In rori;e'', t)uties or customs shall be levied at such rates as may be specified KHANDELWAL METAL WORKS V. l'NION 751 under the Customs Tariff Act, 1975 or under :iny other law for the time being in force, on goods imported into or exported from India. Section 25 of the Customs Act, empowers the Central Governn1ent to grant ex.en1ption from the payment of Customs duty. The rates at which duties of customs shall be levied under the Customs Act, 1962 are specified in the First and Second Schedules of Tariff Act. Sec- tion 3 of the Tariff Act deals with the levy of ''additional duty equal to excise duty". Sub-s.(l) thereof provides that any article which is imported into India shall in addition be leviable to a duty equa 1 to the excise duty for the time being leviable on a like article if produced or manufactured in India and if such excise duty on a like article is leviable at any percentage of its value, the additional duty to which the lmported article shall be so liable shall be calculated at that percentage of the value of the imported article. The expression "the excise duty for the time being leviable on a like article if produced or manufactured in India", according to the Explanation in the section, 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 article to which the imported article belongs, and where such duty is leviable at different rates, the highest duty. A B c D On June 25, 1977 the Central Goverment issued ".'Jotification No. 97 under s. 25 of the Customs Act 1962, eKempting article;; other than copper waste and scrap and unwrought copper (refined or not) falling under Headini: E No. 74.01/02 of the First Schedule to the Customs Tariff Act, 1975) (51of1975) when imported into India, from so much of duty of customs leviabJe thereon which is specified in the First Schedule as is in excess j of 40 per cent ad valorem. Another Notification No. 156 was issued by the Central Government F on July 16, 1977 by which copper waste and scrap falling under the same heading were exempted from so much of the duty of customs leviable thereon which is specified in the First Schedule, "as is in excess of 80 per c
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