Ex post facto re-export extension under customs notification allowed on reconsideration; duty and interest demand could not survive.

Permission for ex post facto extension of the re-export period under Notification No. 158/95-Cus. was considered where the goods had in fact been re-exported beyond the initial six-month period. The notification allowed the Commissioner to grant a further extension of up to six months, and the delay was explained by circumstances such as frequent electricity cuts. As the Commissioner had declined extension mainly because the request was made after expiry without examining the reasons for delay, the matter was remanded for lenient reconsideration. Once factual re-export was undisputed, the customs duty and interest demand could not survive and was set aside.

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Issues: Whether permission for extension of the re-export period under Notification No. 158/95-Cus. could be granted ex post facto and whether the customs duty and interest demand on the re-imported goods could survive when the goods had in fact been re-exported.

Analysis: The goods had been re-exported, though beyond the normal six-month period. The notification itself permits the Commissioner of Customs to allow a further extension of up to six months. The delay was explained by circumstances such as frequent electricity cuts, and the Commissioner had declined extension mainly because the request was made after expiry of the initial period without examining the reasons for the delay. In these circumstances, the matter required a lenient reconsideration for ex post facto permission, and the consequential demand could not be sustained once factual re-export was undisputed.

Conclusion: The request for extension was remanded for reconsideration, and the duty and interest demand was set aside.

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