PROVISION OF COUNTERVAILING DUTY (CVD) OR ADDITIONAL DUTY OF CUSTOMS :- 1. IT IS LEVIED U/S 3(1) OF THE CUSTOM TARIFF ACT. 2. IT IS LEVIED TO OFFSET THE EXCISE DUTY LEVIABLE ON A LIKE ARTICLE MANUFACTURES OR PRODUCED IN INDIA. CASE LAW:- IF GOODS ARE EXEMPT FROM DUTY IF MANUFACTURED AND SOLD IN INDIA, THERE IS NO CVD PAYBLE LIKE CASE (CCE vs J K SYNTHETICS (SUPREEME COURT) CVD, IS PAYBLE ON VALUE OF THE GOODS IMPORTED + BASIC DUTY (JAIN BROTHERS vs UOI (SUPREEME COURT)