- (1.) The respondent imported a diesel engine set. The invoice thereof showed the price of Rs. 8,50,740/- for the said set along wth standard spares and accessories. The Customs Department assessed the said set for the purposes of additional duty of Customs under T.I. 68 of the Central Excise Tariff and, accordingly, charged additional duty at the rate of 8% ad valorem. The respondent filed a refund claim. It stated that the said set comprised of a diesel engine and an alternator. It provided the break up of the price of the said set, namely, Rupees 5,95,540/- for the diesel engine and Rs. 2,55,200/- for the alternator. It claimed that the additional duty should have been charged separately on each of the two components of the said set and the benefit of exemption notifications in this regard should have been given. The refund claim was rejected by the Assistant Collector for Customs. The respondent's appeal to the Collector of Customs (Appeals) failed.
(2.) The respondent carried the matter to the Tribunal. The Tribunal applied Section 19 of the Customs Act and came to the conclusion that the two main components of the said set, namely, the diesel engine and the generator, should have been separately assessed to additional duty and the benefit of the applicable exemption notifications given. Against the order of the Tribunal, the Customs authorities have preferred this appeal.
(3.) In the first place, Section 19 of the Customs Act is inapplicable to the assessment of additional duty under the Customs Tariff Act. Section 19 applies to "duty" that is, "duty under the Customs Act", as is clear from Section 2(15) of the Customs Act. The method of determination of Customs duty thereunder where goods consist of articles liable to different rates of Customs duty is not applicable for the purposes of assessment of additional duty under the Customs Tariff Act.;