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of CESTAT allowed the appeal, holding that Special Additional Duty (SAD) is not leviable on raw jute imports when no Value Added Tax (VAT) is payable domestically. The tribunal determined that SAD is designed to counter-balance domestic sales taxes, and since raw jute was exempt from VAT under West Bengal VAT Act, no additional customs duty could be imposed. Consequently, the tribunal set aside the original demand for SAD, interest, and penalties, finding the appellant not liable for the contested customs duty.
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