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Issues:
Exemption from additional duty on imported Cumene based on excise duty exemption. Analysis: The petitioners, the only manufacturers of Cumene in India, import it when short. A consignment of 2,000 M.T.s of Cumene arrived in Bombay in November 1982, and Customs authorities demanded additional duty. The contention was that since no excise duty is levied on Cumene due to an exemption notification, no additional duty should apply. Referring to a Division Bench judgment, it was argued that additional duty cannot be imposed on imported items exempt from excise duty when manufactured in India. The judgment highlighted that the exemption notification required the material to be used in the factory for manufacturing the finished product, a condition satisfied by the petitioners. This argument was supported by a previous judgment in a similar case. In a previous case concerning the same exemption notification, the judge ruled in favor of the petitioner based on the Century Enka case, which established that if an article is exempt from excise duty when manufactured in India, no additional duty should be levied on its import. Following this precedent, the judge held that the petitioners were entitled to clear the imported Cumene without paying additional duty. The petition was successful, and no costs were awarded. Additionally, a bank guarantee provided earlier was to be discharged based on the judgment's outcome.
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