Customs exemption notification entries operate independently where imported goods satisfy the applicable conditions for special additional duty relief.

HDPE granules imported on a high-seas sale basis were held entitled to exemption from special additional duty under Notification No. 56/98-Cus. because the goods had already been fully exempted from basic customs duty and additional customs duty under Notification No. 104/95-Cus. The notification was read as a table of separate serial entries operating independently, so exemption under the applicable entry could not be denied by combining different entries. Serial No. 13 supported the claim where goods were exempt under Notification No. 104/95-Cus., and Serial No. 3 also covered goods fully exempt from basic customs duty and additional duty. The denial of exemption was unsustainable and the appeals were allowed with consequential relief.

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Issues: Whether HDPE granules imported on high-seas sale basis were entitled to exemption from special additional duty under Notification No. 56/98-Cus. dated 01.08.1998 on the basis that the goods were already exempt from basic customs duty and additional customs duty under Notification No. 104/95-Cus. dated 30.05.1995.

Analysis: The notification was read as a table containing separate serial entries, each dealing with distinct categories of goods and operating on its own footing. The exemption claimed under serial number 13 was held to apply where the goods were also exempt under Notification No. 104/95-Cus. Since the imported goods had already been granted full exemption from basic customs duty and additional customs duty under that notification, the conditions for the special additional duty exemption were satisfied. The same result was also supported by serial number 3, which exempts goods fully exempt from basic customs duty and additional duty of customs.

Conclusion: The imported goods were entitled to exemption from special additional duty under Notification No. 56/98-Cus. dated 01.08.1998, and the denial of exemption was ? no, should avoid non-English. The denial of exemption was unsustainable and the issue was decided in favour of the assessee.

Final Conclusion: The order-in-appeal was set aside and the appeals were allowed with consequential relief according to law.

Ratio Decidendi: Where a customs exemption notification contains distinct serial entries operating independently, exemption cannot be denied by reading separate entries together if the goods satisfy the conditions of the applicable entry.

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