VARELI WEAVES PVT.LTD. & ANR. vs UNION OF INDIA & ORS.

The Supreme Court ruled that countervailing duty must be levied on imported goods in the state they are at the time of import, as mandated by Section 3 of the Customs Tariff Act. The Court held that the partially oriented yarn (POY) imported by the appellants fell within the exemption for POY of 100 deniers and above but not above 750 deniers, thus entitling them to the exemption notification dated 28th February 1982. The Court set aside the Delhi High Court's order and allowed the appellants' writ petition, discharging the bank guarantee previously furnished.