1. The issue involved in all these appeals filed by M/s DCM Benetton India Ltd. is whether the assessable value of the imported goods for the purpose of levying Additional Customs Duty will be the transaction value or the tariff value fixed under Section 3(2) of the Central Excise Act.
2. Shri R. Parthasarathy, learned Advocate submitted that the appellants manufacture and sell ready-made garments and accessories; that they had imported various shipment of garments in bulk from Nepal; that the assessment of the imported goods has been made for the purpose of levying Additional Customs Duty on the basis of tariff value fixed by the Central Government under Section 3(2) of the Central Excise Tariff under Notification No. 20/2001-CE(NT) dated 30.4.2001; that the imported goods are required to be assessed on the basis of transaction value as the same are imported in bulk and in unpacked condition from Nepal; that Section 3(3) of the Customs Tariff Act nowhere provides that tariff value fixed under Section 3(2) of the Central Excise Act will be applicable in respect of the goods imported from abroad.
3. Countering the arguments, Mrs. Krishna A. Mishra, learned SDR, reiterated the findings as contained in the impugned Order and submitted that the Central Government under Notification 20/2001-CE(NT) has fixed the tariff value in respect of articles of apparel, all sorts falling under heading 61.01 or 62.01 of the Schedule to the Central Excise Tariff Act at the rate of 60% of the retail price that is declared or are required to be declared on the retail packages under the provisions of the Standards of Weights and Measures Act, 1976, or the Rules made thereunder or under any other law for the time being in force; that the appellant had declared the retail sale price of the impugned goods in the Bills of entry during the relevant period.
4. We have considered the submissions of both the sides. Sub-section (2) of Section 3 of the Customs Tariff Act provides the measure for determining the value of the imported article for the purpose of levying Additional Customs Duty. According to this sub-section, the value shall be the aggregate of (i) the value of the imported article determined under Sub-section (1) of Section 14 of the Customs Act or the tariff value of such article fixed under Sub-section (2) of Section 14 of the Customs Act, and (ii) any duty of customs chargeable on that article under Section 12 of the Customs Act, and any sum chargeable on that article under any law for the time being in force. Proviso to Sub-section (2) of Section 3 of the Customs Tariff Act further provides for levying the duty on the basis of maximum retail price if the imported goods or some class of goods have been specified by notification under Section 4A of the Central Excise Act. Nowhere the Section 3 of the Customs Tariff Act provides that assessable value for the purpose of levying additional customs duty can be the tariff value of the like goods fixed by the Central Government under Section 3(2) of the Central Excise Act. The tariff value mentioned in Sub-section (2) of Section 3 of the Customs Tariff Act only refers to tariff value fixed by the Central Government under Section 14 of the Customs Act and not under Section 3 of the Central Excise Act. In view of this legal position, the Revenue is not justified in charging the additional customs duty on the basis of tariff value fixed under Section 3(2) of the Central Excise Act. We, therefore, set aside the impugned order and allow all the appeals.