Harmonious construction of exemption notifications allows Advance Release Order supplies to claim customs duty exemption.

Two exemption notifications governing the same transaction must be read harmoniously, and supplies made under an Advance Release Order can qualify for exemption from additional duty of customs when that combined construction so provides. The Tribunal followed the Supreme Court's binding view in Lipy Lisy Pharmaceuticals and applied it to the same issue, noting that the earlier contrary position in the assessee's own matter no longer prevailed after merger. On that basis, the additional duty exemption was treated as available for such supplies.

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Issues: Whether supplies made against an Advance Release Order under paragraph 7.4 of the Export-Import Policy were eligible for exemption from payment of additional duty of customs by reading Notification No. 30/97-Cus. and Notification No. 82/92-C.E. harmoniously.

Analysis: The issue was treated as settled by the Supreme Court's decision in Lipy Lisy Pharmaceuticals P. Ltd., which upheld the Tribunal's view that the two notifications had to be read together and that supplies under an Advance Release Order qualified for exemption from additional duty of customs as well. The Tribunal followed that binding outcome and applied it to the identical issue before it. The earlier contrary view in the assessee's own case did not prevail because the Tribunal's order stood merged in the Supreme Court's dismissal of the Revenue's civil appeal.

Conclusion: The exemption from additional duty of customs was available to the assessee, and the issue was answered in favour of the assessee.

Final Conclusion: The impugned order was set aside and the assessee's appeal succeeded on the substantive duty exemption question.

Ratio Decidendi: Where two exemption notifications governing the same transaction are intended to operate together, they must be construed harmoniously, and supplies made under an Advance Release Order may qualify for exemption from additional duty of customs when that combined reading so provides.

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