Re-imported indigenous goods after duty-paid export are not liable to additional customs duty absent rebate or drawback.

Indigenous goods re-imported after export on payment of excise duty are not subject to additional customs duty equal to that excise duty under Section 20 of the Customs Act, 1962. The re-import rule is applied differently where the goods were exported in bond without payment of excise duty, in which case duty becomes payable on re-import. The exemption is available only if no rebate or drawback was claimed on the original export, and refund consequences depend on verification of that condition.

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Issues: Whether indigenous goods, exported after payment of excise duty and without claiming rebate or drawback, were liable to additional customs duty on re-importation under Section 20 of the Customs Act, 1962.

Analysis: The re-import provisions were construed on the basis that where indigenous goods had already suffered excise duty at the time of export, re-importation did not attract a further levy of customs duty equal to excise duty. The contrary position would apply where goods had been exported in bond without payment of excise duty, in which case duty would become payable on re-import. The only factual condition left for verification was whether rebate or drawback had in fact been received on the original export.

Conclusion: No additional customs duty was payable on re-importation, and the assessee was entitled to consequential refund subject to verification that no rebate or drawback had been taken on the original export.

Ratio Decidendi: Under Section 20 of the Customs Act, 1962, indigenous goods re-imported after export on payment of excise duty are not liable to additional customs duty equal to excise duty, unless the statutory condition regarding rebate or drawback disentitles the exemption.

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