2026-VIL-123-CESTAT-HYD-CU
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CUSTOMS CESTAT Cases

Customs – Customs duty on re-imported goods – Respondent-assessee exported certain consignments to Kenya Medical Supply Agency (KEMSA), which were not accepted by KEMSA on the grounds that the drugs were delisted by the USFDA and hence no longer eligible for procurement using USAID Funds - The respondent sought to re-import the goods for destruction, as the DCGI informed that the goods had less than 60% shelf life and could not be used domestically. The adjudicating authority allowed the re-importation without payment of customs duty, holding that the goods were meant for destruction and had no commercial value - Whether the re-imported goods were liable to customs duty or were exempt from duty payment – HELD - The re-importation of goods attracts Customs duty under Section 20 of the Customs Act, as the re-imported goods are subject to the same conditions and restrictions as goods of like kind and value imported for the first time. The Tribunal observed that there is no specific exemption notification that exempts goods from levy of customs duty at the time of re-importation. The reliance placed by the adjudicating authority on provisions related to 100% EOUs for destruction of goods without payment of duty was misplaced, as those provisions do not apply in the present case. The proper course of action would have been for the respondent to pay the applicable customs duty at the time of re-importation and then seek remission of duty under Section 23 of the Customs Act, which deals with remission of duty on lost, destroyed or abandoned goods. Matter remanded the matter back to the adjudicating authority to decide the issue of customs duty payable on the re-imported goods - The appeal filed by the Department is allowed by way of remand to the adjudicating authority to decide the issue of customs duty payable on the re-imported goods – The appeal is allowed by way of remand
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