Duty debit on returned bonded export goods was not warranted absent a specific statutory requirement, with credit restored.

Export goods cleared under bond and later returned to the factory of origin did not, on this record, require a fresh duty debit in RG 23A Part II. The return of the goods by itself was held insufficient to justify levy or debit, and the assessee could not be denied corresponding credit of the amount already debited. The duty debit was therefore treated as unwarranted, and relief followed for the assessee against the disputed debit.

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Issues: Whether duty was required to be debited in RG 23A Part II when export goods cleared under bond were returned to the factory of origin, and whether the assessee was entitled to corresponding credit or refund.

Analysis: The only substantive question was the legality of the duty debit made at the time the returned goods were received back in the factory. The earlier authorities had proceeded on a different footing, but on the record it was found that there was no necessity to debit duty merely because the exported goods were brought back to the factory. The return of the goods to the factory of origin did not, by itself, justify the levy or debit, and the assessee could not be denied credit of the amount so debited.

Conclusion: The duty debit was not warranted, and the assessee was entitled to credit of the amount debited in RG 23A Part II.

Final Conclusion: The Revenue's challenge failed and the assessee obtained relief against the disputed duty debit.

Ratio Decidendi: Where export goods cleared under bond are returned to the factory of origin, duty cannot be insisted upon merely on such return unless the statute specifically so requires.

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