Case: Delhi Cloth and General Mills Company Limited and Another Vs. Union of India and Another

2. The appellants manufacture type yarn cord and fabric for which purpose they import tyre cord grade wood pulp from the United States of America. The appellants were called upon to pay additional duty thereon under the provisions of Section 3 of the Customs Tariff Act, 1975  3. Among other contentions raised by the appellants was this : The said wood pulp was not produced or manufactured in India. Under the terms of Section 3 additional duty had, therefore, to be calculated on the basis of the excise duty that would be leviable on the class or description of articles to which the said wood pulp belonged. There was no entry in the Tariff that related to an article of the like of the said wood pulp. Entry 68, being a residuary entry relating to no class or description of goods, did not apply. No additional duty was, therefore, leviable on the said wood pulp  4. The said contention was rejected by the Assistant Collector and by the High Court in the writ petition filed by the appellants  5. It is the only contention raised before us

Court's reasoning:
8. Where a like article is not produced or manufactured in India additional duty is required to be levied on the imported article upon the basis of the excise duty that is leviable on the class or description of articles to which the imported article belongs. Articles which are not elsewhere described, falling under the residuary Entry 68, form a class by themselves. Hence, if a like article is not described in the tariff, additional duty is leviable on the imported article upon the basis of the levy of excise duty under the provisions of Entry 689. The only contention raised before us is rejected