2026-VIL-1684-CESTAT-BLR-CU
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CUSTOMS CESTAT Cases

Customs - Refund of Special Additional Duty under Notification No. 102/2007-Cus. dated 14.09.2007 - Sterilisation, repacking and relabelling of imported goods amounting to manufacture - Appellants imported non-sterile medical latex examination gloves in bulk and sold them as sterilised surgical gloves in pairs after sterilisation, repacking and relabelling, having cleared them on payment of Central Excise duty at the concessional rate under Notification No. 1/2011-CE - Refund of Special Additional Duty was rejected or erroneously refunded amount was demanded on the ground that a condition of the Notification was not satisfied - Whether the Appellants are entitled to refund of Special Additional Duty under Notification No. 102/2007-Cus. where the imported goods were sterilised, repacked and relabelled before sale - HELD - The Notification exempts goods imported for subsequent sale, and the expressions 'said goods' and 'sale of such imported goods' in the conditions and documents required clearly imply that what is to be sold is the goods that were imported without any further process of manufacture. The definition of manufacture under Section 2(f) of the Central Excise Act, 1944 is expansive, and processes specified in the Section or Chapter Notes are deemed manufacture even where no new commodity emerges. The Appellants cannot claim that the goods were sold 'as such' because the identity of the goods did not change. Having cleared the goods on payment of Central Excise duty at the concessional rate on the footing that the process amounted to manufacture, the Appellants cannot now claim that the goods were sold as imported - An exemption notification has to be interpreted strictly, and failure to fulfil any one condition disentitles the benefit. The decision of the Gujarat High Court, upheld by the Supreme Court, in an identical set of facts is followed. Since the Appellants sold a product different from the imported goods after a process amounting to manufacture, the condition of the Notification was not satisfied - The impugned orders are sustained and all the appeals are dismissed
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GST & Customs updates: Sep'26
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