Special additional customs duty on imported goods sold after high seas sale was found unsustainable when sales tax was paid.

Imported LPG purchased through high seas sale and later resold with sales tax paid was held not liable to special additional customs duty. CESTAT applied its earlier ruling on the same issue and found that, where imported goods are sold as such and the subsequent sale bears sales tax, the duty demand cannot be sustained. The impugned order was set aside and the assessee obtained relief against the demand.

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Issues: Whether the demand of special additional customs duty on imported LPG was sustainable where the goods were purchased through high seas sale, subsequently sold to customers, and sales tax was paid.

Analysis: The imported LPG was admittedly brought in through high seas sale transactions and thereafter sold to various customers. Sales tax had also been discharged on such sales. The Tribunal noted that on an identical issue it had already held that special additional duty is not leviable where the imported goods are sold as such and bear the burden of sales tax. Applying that earlier decision, the Tribunal found no basis to sustain the duty demand in the present case.

Conclusion: The demand of special additional customs duty was held unsustainable and the impugned order was set aside in favour of the assessee.

Final Conclusion: The appeal succeeded, and the assessee obtained complete relief against the duty demand.

Ratio Decidendi: Where imported goods are sold after high seas purchase and sales tax is paid on the subsequent sale, special additional customs duty is not leviable.

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