Customs duty drawback on re-imported goods applies to duty recovered from the exporter under the notification.

On a plain and harmonious reading of the Customs Act, 1962 and Notification No. 94/96-Cus., the amount recovered from an exporter on re-import was treated as customs duty paid on importation where the goods had earlier been exported under drawback. That recovered amount therefore fell within Section 74(1), entitling the importer to drawback at 98% of the duty paid back on re-import. The notification was construed as exempting only the duty in excess of the amount specified in its table, and the interpretation was reinforced by the Board's clarification and the requirement that the statutory text and circulars be applied as written.

---

---

Issues: Whether the amount recovered from the exporter at the time of re-import could be treated as customs duty for the purpose of drawback under Section 74(1) of the Customs Act, 1962, and whether the exporter was entitled to drawback on that recovered amount under Notification No. 94/96-Cus. dated 16-12-1996.

Analysis: The relevant notification was read in the light of Sections 12, 20 and 25 of the Customs Act, 1962. On a plain and harmonious reading, the notification exempted only the duty in excess of the amount specified in the table, and in cases where goods had originally been exported under claim for drawback, the re-import was liable to duty equivalent to the drawback earlier allowed. The amount of Rs. 1,33,845 paid back on re-import was treated as customs duty paid on importation, and Section 74(1) entitled the importer to drawback at 98% of that duty. The conclusion was supported by the Board's clarification and the settled approach that the statutory wording and relevant circulars must be given effect to as written.

Conclusion: The amount paid back on re-import qualified as customs duty for the purpose of Section 74(1), and the exporter was entitled to drawback on that amount.

Ratio Decidendi: Where duty is recovered on re-import under the applicable notification, that amount constitutes customs duty paid on importation and attracts drawback under Section 74(1) of the Customs Act, 1962 according to the plain statutory language.

---