Auxiliary duty exemption follows basic duty exemption where the later notification expressly extends the concession.

Auxiliary duty exemption under Notification No. 194/92 was treated as available where basic duty exemption had already been granted under Notification No. 59/87. The document notes that the earlier basic duty benefit was undisputed and that the later notification expressly extended the auxiliary duty concession to such cases. On that basis, denial of the auxiliary duty exemption was unsustainable, and the assessee received consequential relief on the exemption issue.

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Issues: Whether the assessee, having been granted exemption from basic duty under Notification No. 59/87, was entitled to exemption from auxiliary duty under Notification No. 194/92.

Analysis: The assessee had already obtained the benefit of exemption from basic duty under Notification No. 59/87, and that benefit was not challenged by the department in the present proceedings. Notification No. 194/92 was treated as making the auxiliary duty concession available where basic duty exemption had been granted under Notification No. 59/87. On that basis, the denial of auxiliary duty exemption could not be sustained.

Conclusion: The assessee was entitled to the auxiliary duty exemption under Notification No. 194/92 and the issue was decided in favour of the assessee.

Final Conclusion: The appeal succeeded on the limited exemption issue and the assessee obtained consequential relief.

Ratio Decidendi: Where an assessee has been granted basic duty exemption under the specified notification, the corresponding auxiliary duty concession cannot be denied when the later notification expressly extends that benefit.

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