Imported Natural Rubber liable for Additional Duty under Customs Tariff Act: CESTAT Rejects MRF's Appeal [Read Order]

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai Bench, rejected MRF Limited’s appeal and held that imported natural rubber would be liable for Additional Duty under Customs Tariff Act, 1975.

The Revenue alleged that the appellant who had filed Bills of Entry for clearance of imported natural rubber was liable for Cess and accordingly, a SCN was issued with the demand along with applicable interest. The Original Authority confirmed the proposed demands, against which the appellant had filed an appeal before the First Appellate Authority.

The Commissioner (Appeals) took into consideration the decision of the Larger Bench of the CESTAT in TTK-LT Ltd. v. CC Chennai/New Delhi (2006) and dismissed their appeals, upholding the demands.

Both the counsels relied on orders/judgments to support their claims. When further appealed, the tribunal took note of the issue of applicability of levy of Additional Duty of Customs under Section 3(1)of CTA and its equivalence to Rubber Cess under Section 12 of the Rubber Act, 1947.

The tribunal observed that in the appellant’s own case, the Bangalore Bench has dismissed the appeal by following the order of the Tribunal in the appellant’s own case for an earlier period after relying on the TTK-LTG Ltd. case.

The two-member bench comprising Vasa Seshagiri Rao (Technical Member) and P. Dinesha (Judicial Member) ascertained that the order of the coordinate Bangalore Bench is to be followed wherein the issue had been decided against the appellant. The appeal was accordingly dismissed.

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