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Issues:
1. Challenge to assessment order and refund claim based on levy of Customs duty. 2. Interpretation of Customs Act provisions regarding levy of basic Customs duty. 3. Application of Full Bench decision on determination of Customs duty liability. Analysis: The case involved an appeal by the Collector of Customs against a judgment striking down an assessment order and directing a refund of the amount collected. The dispute arose when the Central Government exempted Palmoleine from Customs duty, but later levied basic Customs duty and countervailing duty. The importer challenged the assessment, arguing that the basic Customs duty should not have been imposed after the goods had entered Indian waters before the duty notification. The Court referred to a Full Bench decision stating that if goods were wholly exempt from duty when entering Indian waters, no duty would be leviable even if the exemption was withdrawn before clearance for home consumption. The Court upheld the Single Judge's decision, ruling that the Customs authorities were not entitled to recover basic Customs duty following the Full Bench's interpretation of the law. The Court dismissed the appeal, emphasizing that the Customs authorities' action in recovering basic Customs duty was not sustainable based on the Full Bench's ruling. The Court noted that the Customs authorities had appealed to the Supreme Court on a similar matter but stated that it would not affect the current decision. The judgment concluded by directing the appellants to refund the amount as per the Single Judge's order within three months. The decision was based on the interpretation of the Customs Act and the application of the Full Bench's ruling, affirming the refund claim and rejecting the challenge to the assessment order.
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