High-seas sale duty exemption upheld where denial based only on non-direct purchase from the manufacturer was not sustained.

Entitlement to duty exemption on imported cement bags sold on a high-seas basis was examined where exemption had been denied because the goods were not purchased directly from the actual manufacturer. CESTAT Chennai followed its earlier decision on the identical issue and held that exemption could not be refused merely on the ground of the absence of a direct purchase from the manufacturer. As the record did not justify any departure from the earlier ruling, the denial of exemption was not sustained and the appellants were treated as entitled to the duty benefit.

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Issues: Whether the appellants were entitled to duty exemption on imported cement bags purchased on high seas sale basis, and whether denial of exemption on the ground that the goods were not purchased directly from the actual manufacturer was sustainable.

Analysis: The appeals concerned the same dispute. The Tribunal followed its earlier decision on the identical issue and applied the same reasoning that entitlement to the exemption could not be denied merely because the goods were not purchased directly from the manufacturer. The record did not justify a different view from the earlier ruling relied upon by the parties.

Conclusion: The denial of exemption was not sustained, and the appellants were held entitled to the duty benefit.

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