Refund of customs duty on re-exported imported goods allowed where goods remained under customs control and drawback was not claimed.

Customs duty paid on imported goods that were never cleared for home consumption and were re-exported while still under customs control was held refundable. The duty could not be retained where the goods did not match the declared description, were re-exported under the adjudication order, and remained under customs control throughout. Refund also could not be denied merely because the exporter had not claimed drawback. The rejection of the refund claim was therefore unsustainable, and refund of the duty was admissible.

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Issues: Whether customs duty paid on imported goods was refundable when the goods, not cleared for home consumption and remaining under customs control, were re-exported after adjudication, and whether refund could be denied for want of a drawback claim.

Analysis: The goods were found not to tally with the declared description and were re-exported in terms of the adjudication order after payment of redemption fine and penalty. As the goods were never cleared for home consumption at any stage and were re-exported while still under customs control, the duty paid on such goods was not liable to be retained. Denial of refund solely on the ground that the export was not made under a claim for drawback was held to be unjustified.

Conclusion: Refund of the customs duty paid was admissible and the rejection of the refund claim was unsustainable.

Ratio Decidendi: Where imported goods are not cleared for home consumption and are re-exported while still under customs control, customs duty paid thereon is refundable, and refund cannot be refused merely because drawback was not claimed.

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