- (1.) The appellants imported a consignment of polyester fibre at a time when no additional excise duty (and therefore no C. V. duty) was payable. The goods were warehoused and cleared after the additional excise duty bad been imposed. The department had collected the duty and declined to give a refund. The question arose whether the goods are liable to be charged C. V. duty. The tribunal held that the rate of duty as on the date of clearance from the warehouse would apply.
(2.) The appellants have contended that the additional excise duty itself was levied for the first time after the goods had been imported. government sent out instructions in the form of a telegram to all Collectorates that this duty was not to be charged on any goods which stood manufactured before the date of the ordinance irrespective of whether they were cleared from the factory afterwards, how could the additional duty of customs (C. V. D. ) which has to be equal to the excise duty be charged on similar goods already imported and warehoused. They have contended that it is the chargeability which has to be determined first; then alone the question of rate of quantum of duty arises. The appellants have distinguished the Supreme court judgment in the Prakash Cotton Mills (Cen-Cus1979/ 193 D) case where the question was the determination of rate of foreign exchange from the warehouse. Their contention is that the matter then under consideration before the Supreme court was the quantum of duty and not the chargeability. And when the excise duty itself is not chargeable on goods held in stock how can C. V. D. be charged on the same date in respect of imported goods similarly held in stock in a warehouse.;