Post-facto extension under re-export exemption allowed for repaired goods; technical delay warranted remand for reconsideration.

Notification No. 158/95-Cus required goods re-imported for repairs to be re-exported within six months, with a further extension of up to six months available from the Commissioner of Customs. Where the importer applied for extension, the department gave no response, the adjudication proceedings were later dropped, and the goods were ultimately re-exported within one year, the delay was treated as technical and deserving lenient consideration. The appellate order was therefore set aside and the matter remanded to the original authority to consider post-facto extension of time and readjudicate the show cause notice.

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Issues: Whether the goods re-imported for repairs and re-exported beyond six months under Notification No. 158/95-Cus. ceased to qualify for the exemption for want of prior extension, and whether the matter should be remanded for consideration of post-facto extension.

Analysis: The notification required re-export within six months of re-importation, with a further extension not exceeding six months being grantable by the Commissioner of Customs. The assessee had addressed an application seeking extension, the department did not respond, and the proceedings were later dropped at the adjudication stage, giving rise to a bona fide belief that the time had stood extended. The record also showed that the goods were ultimately re-exported within one year and there was no dispute about the actual re-export. In these circumstances, the lapse was treated as technical, and lenient consideration of the request for extension was considered appropriate.

Conclusion: The earlier appellate order was set aside, and the matter was remanded to the original authority to consider post-facto extension of time and to readjudicate the show cause notice.

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