Customs exemption extends to additional duty unless the notification shows a contrary intent.

An exemption from customs duty was construed to extend to the additional duty leviable under section 3 of the Customs Tariff Act, 1975, because that levy was treated as supplementary to customs duty and anchored in the charging framework of section 12 of the Customs Act, 1962. On that construction, a customs exemption notification ordinarily covers the corresponding additional duty unless the notification shows a contrary intent. The result was that the exemption applied to the additional duty as well, favouring the appellant.

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Issues: Whether an exemption from customs duty under Notification No. 145/58 extended to the additional duty leviable under section 3 of the Customs Tariff Act, 1975, even though that additional duty was not expressly mentioned.

Analysis: The levy under section 3 of the Customs Tariff Act, 1975 was treated as an additional and supplementary levy allied to customs duty, with the charging provision remaining section 12 of the Customs Act, 1962. On that construction, an exemption from customs duty was held to comprehend the corresponding additional duty unless the notification indicated a contrary intent.

Conclusion: The exemption covered the additional duty as well, and the issue was answered in favour of the appellant.

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