HYDERABAD INDUSTRIES LTD. vs UNION OF INDIA .

The Supreme Court held that the levy of additional duty of customs under Section 3(1) of the Customs Act, 1975 on imported asbestos fibre was not justified, as the process of extracting asbestos fibre from rock does not constitute manufacturing. The Court emphasized that the imported asbestos fibre retains its original character and is not a distinct commodity. Consequently, the Court overturned the High Court's decision, ruling that no additional duty could be imposed on the import of asbestos fibre.