M/S. Apollo Tyres Ltd. Vs. Commissioner of Customs, Cochin - Court Judgment

Excerpt:

.....regarding levy of cess or otherwise on rubber which is imported. he submitted that the said cess is leviable by virtue of section 12 of the rubber act and as per the clarifications issued by both the ministry of commerce and the department of revenue, ministry of finance, letter dt.22.7.97, enclosing copy of the letter of the former, it was clarified that under the said section cess is liable on rubber produced in india and not rubber imported. he submits that in the instant case, two bills of entry were filed on 4.4.96 and 2.2.96 and therefore, cess is not leviable in the case of rubber imported by them".3. he submitted that in the instant case also the item was imported on 8.8.95. in view of the clarification to the circular f.no.574/6/97-lc dt.22.7.97. the cess as such cannot be leviable on imported rubber.4. heard smt. radha arun, d.r. who reiterated the stand taken by the department. she submitted to convince us that the said circular is applicable prospectively.5. we find that the issue involved herein has already been considered and concluded by the aforesaid case, and following the ratio of the said decision we accept the contention of the party. accordingly this appeal.....

Judgment:

1. After hearing for sometime with reference to the stay petition filed by the assessee we felt that the matter itself can be disposed of on the limited issue. Accordingly the appeal was taken for regular hearing with the consent of both sides.

2. The short point to be considered in this case is whether cess is leviable on imported rubber. The Learned Counsel appearing for the assessee submitted that the issue involved herein has already been considered by the Tribunal in case of MRF Limited Vs. CC, Madras reported in 1997 (96) ELT 198 (T) as well as in the case of TTK-LIG Ltd., Vs.CC, Chennai reported in 1999 (111) ELT 52(T). He specifically drew out attention to the para 3 of the said decision which is as under:- "The learned Consultant submitted that the issue is regarding levy of cess or otherwise on rubber which is imported. He submitted that the said cess is leviable by virtue of Section 12 of the Rubber Act and as per the clarifications issued by both the Ministry of Commerce and the Department of Revenue, Ministry of Finance, letter dt.22.7.97, enclosing copy of the letter of the former, it was clarified that under the said section cess is liable on rubber produced in India and not rubber imported. He submits that in the instant case, two Bills of Entry were filed on 4.4.96 and 2.2.96 and therefore, cess is not leviable in the case of rubber imported by them".

3. He submitted that in the instant case also the item was imported on 8.8.95. In view of the clarification to the Circular F.No.574/6/97-LC dt.22.7.97. the cess as such cannot be leviable on imported rubber.

4. Heard Smt. Radha Arun, D.R. who reiterated the stand taken by the Department. She submitted to convince us that the said Circular is applicable prospectively.

5. We find that the issue involved herein has already been considered and concluded by the aforesaid case, and following the ratio of the said decision we accept the contention of the party. Accordingly this appeal is allowed with consequential relief. The said petition also gets disposed of accordingly.