G. Sankaran, Senior Vice President

1. This is an appeal against Order-in-Appeal No. B. Cus. 354/87, dated 24-8-1987 passed by the Collector of Customs (Appeals) Madras.

2. The issue for determination in this appeal is whether the consignment of designs and drawings imported by the appellants under Bill of Entry 7160/87, dated 13-4-1987 was liable to be charged to auxiliary duty of customs at 40% ad valorem in terms of Customs Notification No. 111/87, dated 1-3-1987, as held by the lower authorities or was exempt from the said duty in terms of Customs Notification 112/87, dated 1-3-1987.

3. There is no dispute as regards the classification under Heading 4906.00 of the First Schedule to the Customs Tariff Act, 1975 for the purpose of levy of basic duty of customs nor as regards the levy of additional duty of customs.

4. We have heard Shri V. Sridharan, learned counsel, for the appellants and Shri V. Chandrasekaran, SDR, for the respondent-Collector.

5. Auxiliary duty of customs was leviable, under Section 95 of the Finance Bill of 1987, which subsequently was enacted into the Finance Act, on goods mentioned in the First Schedule to the Customs Tariff Act at the rate of 50% of the