Customs exemption ceiling confined to basic duty; auxiliary duty and countervailing duty were not covered.

The 30% ad valorem ceiling in the customs exemption notification was confined to basic customs duty on defective M.S. sheets imported for home consumption, and did not extend to auxiliary duty or countervailing duty. The Bombay HC followed the view earlier taken by the Kerala High Court, as affirmed by the Supreme Court, and a prior decision of a learned Single Judge of the same court. A later notification enhancing certain duties did not alter that construction, so the importer's wider interpretation was rejected.

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Issues: Whether the ceiling of 30% ad valorem under the customs exemption notification applied only to the basic customs duty or also extended to auxiliary duty and countervailing duty on import of defective M.S. sheets.

Analysis: The petitioner's challenge turned on the scope of the exemption notification governing imported goods for home consumption. The Court followed the view earlier taken by the Kerala High Court, as affirmed by the Supreme Court, and the similar view adopted by a learned Single Judge of the same Court, that the 30% ceiling was confined to the basic customs duty. The subsequent notification enhancing certain duties did not alter that position or extend the ceiling to auxiliary duty and countervailing duty.

Conclusion: The ceiling did not apply to auxiliary duty and countervailing duty, and the petitioner's contention was rejected.

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