Goods Exempted from BCD Can Still Attract Additional Duty Unless Specifically Exempted: Madras HC...

The Madras High Court has clarified that goods exempted from Basic Customs Duty (BCD) can still be subject to other duties, such as Additional Duty of Customs (commonly known as Countervailing Duty or CVD), unless they are specifically exempted from these additional duties as well. The court explained that an exemption from BCD does not automatically translate into an exemption from all other components of customs duty. Each duty is levied under a separate legal provision to serve a different purpose—BCD is for revenue, while CVD is to level the playing field between domestic and imported goods. The court stated that for a complete duty exemption, the exemption notification must explicitly mention all the types of duties being exempted. This ruling provides crucial clarity on the interpretation of customs duty exemptions and reinforces the principle that tax exemptions must be construed strictly.