Re-import notification applies by actual purpose of re-importation, making domestic-sale clearance governed by the correct customs exemption.

Re-imported Indian-made goods originally exported under bond were held assessable under Notification No. 94/96 when they were intended for domestic sale after cancellation of the export order. Notification No. 158/95 applied only to re-importation for re-export, so it ceased to govern once the goods were meant for clearance in India. Duty liability was determined by the notification matching the actual purpose of re-importation, not by any prior election between unrelated notifications. The contrary demand was unsustainable, and the excess amount paid was required to be adjusted and refunded.

---

---

Issues: Whether re-imported Indian-made goods, originally exported under bond and later intended for domestic sale after cancellation of the export order, were assessable under Notification No. 94/96 rather than Notification No. 158/95.

Analysis: The goods were the same Indian-manufactured goods that had earlier been exported under bond and subsequently re-imported after defects were removed. Notification No. 158/95 applied to re-importation for re-export, while Notification No. 94/96 governed re-importation for sale in India. Once the export order was cancelled, the goods ceased to fall within the scope of Notification No. 158/95 and attracted the terms of Notification No. 94/96. Duty liability is determined by the applicable legal provision and not by an assessee's prior election between unrelated notifications.

Conclusion: The re-imported goods were liable to be assessed under Notification No. 94/96, and the demand based on the contrary view was not sustainable.

Final Conclusion: The assessee was entitled to the benefit of the notification applicable to re-import for domestic sale, and the excess amount paid was to be adjusted and refunded.

Ratio Decidendi: Liability on re-imported goods depends on the specific notification governing the actual purpose of re-importation, and a notification applicable to re-export cannot be insisted upon once the goods are meant for domestic clearance.

---