Re-imported goods exemption bars Special Additional Duty demand and supports refund of duty paid under protest.

Re-imported goods were treated as eligible for exemption under Notification No. 94/96-Cus. because the notification extended relief from customs duty, additional duty and special duty to the extent specified in the relevant entry. As the goods had been exported under bond without payment of central excise duty, the duty on re-importation was confined to the central excise duty not earlier paid. The notification operated as a combined exemption, so Special Additional Duty of Customs could not be demanded over and above that amount. Refund of duty paid under protest was therefore admissible.

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Issues: Whether re-imported goods were entitled to exemption from Special Additional Duty of Customs under Notification No. 94/96-Cus. dated 16-12-1996 and whether the duty paid under protest was refundable.

Analysis: The notification granted exemption to re-imported goods from customs duty, additional duty and special duty to the extent the duty exceeded the amount specified in the relevant table entry. The goods had been originally exported under bond without payment of central excise duty and, on re-importation, fell under the relevant serial entry. The duty payable on re-importation was only the amount of central excise duty not earlier paid. Since the notification operated as a combined exemption for basic customs duty, additional duty and special duty of customs, there was no requirement to pay Special Additional Duty in excess of the central excise duty already paid.

Conclusion: The Special Additional Duty of Customs was not payable and the appellants were entitled to refund.

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