In Brief
Colgate Palmolive imported dental hygiene products from Nepal and paid Special Additional Duty (SAD) between March and September 2000. It sought refund after a November 2000 notification exempted SAD on Nepalese imports. The Court held that the 1996 Indo-Nepal Treaty predated SAD's introduction (1998) and the Treaty's protocol made no reference to SAD. Notification No. 124/2000 was a new, prospective exemption—not clarificatory of existing obligations. SAD was therefore correctly levied during the interim period. No refund was due. The appeals were dismissed.
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