2026-VIL-1757-CESTAT-KOL-CU
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CUSTOMS CESTAT Cases

Customs - Re-export of goods re-imported for repair - Substitution of freshly manufactured goods for re-imported goods - Appellant exported goods which were received in damaged condition by the foreign buyer and sent back to India for rework, and cleared the re-imported goods without payment of duty under an exemption Notification on executing a bond and bank guarantee, on the condition that the goods would be re-exported after repairs - Instead of re-exporting the reworked goods, Appellant exported freshly manufactured goods of the same quality in view of the urgent requirement of the overseas buyer, and the shipping bill made no mention that the goods were being re-exported - Whether the Appellant, by exporting freshly manufactured goods in place of the re-imported goods, fulfilled the condition of the Notification so as to escape the demand - HELD - The Notification No. 158/95 CUS dated 14-11-1995 requires the importer to execute a bond undertaking to export the goods after repairs or reconditioning within the specified period and to pay on demand on failure to comply, which makes it clear that the goods to be re-exported are the very goods re-imported into India for which permission was granted to take up repair work and to re-export within the specified time. Nothing in the Notification permits normally manufactured goods to be substituted for the re-imported goods and exported against them - The shipping bill did not mention that the goods dispatched were the re-imported goods after rework, and had this fact been disclosed, the Assistant Commissioner at the Port would have caused necessary verification as to whether the goods being re-exported were the same ones repaired and reconditioned at the factory of the Appellant. This factual evidence could not be verified since the Appellant failed to mention it in the shipping bill - The decision relied upon by the Appellant concerned drawback on re-exports of scrap and was on a completely different issue, while the other decision turned on different facts and was not applicable - The Appellant did not fulfil the requisite condition of the Notification - The appeal is dismissed
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