Customs duty exemption on re-imported jewellery within three years prevailed over the DEEC 60-day condition at the interim stage.

Re-import of jewellery exported for exhibition was treated as prima facie eligible for customs duty exemption under Notification No. 94/96-Cus. because the notification allowed re-import within three years of export. The 60-day re-import condition invoked by Revenue was linked to the DEEC Scheme, and it did not apply where the exporter was not registered under that scheme and had used a free shipping bill. On that basis, the applicant was found to have a strong prima facie case for waiver of pre-deposit, and the duty demand was not required to be deposited at the interim stage.

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Issues: Whether jewellery exported for exhibition and re-imported after 100 days was prima facie entitled to exemption from customs duty under Notification No. 94/96-Cus., and whether the 60-day re-import condition applicable to the DEEC Scheme could be invoked against the applicant.

Analysis: The exemption notification permitted re-import of exported goods into India without payment of duty within three years of export. The 60-day restriction relied upon by the Revenue applied to exporters operating under the DEEC Scheme. The applicant was not registered under that scheme and had exported the goods under a free shipping bill. On that basis, the notification, not the DEEC condition, governed the claim for exemption at the interim stage.

Conclusion: The applicant was held to have a strong prima facie case for waiver of pre-deposit, and the demand was not required to be deposited at that stage.

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