De-logged DEEC exports qualify as non-DEEC exports for re-import exemption where the extended period is satisfied.

Exports initially made under the DEEC scheme, once validly de-logged from the DEEC book, are to be treated as non-DEEC exports for the purpose of re-import exemption under Notification No. 94/96-Cus. The Tribunal followed its earlier view that de-logging changes the character of the shipping bill, and held that the extended re-import period granted by the competent authority could not be ignored. Because the goods were re-imported within that extended period, the conditions of the notification were satisfied, and denial of exemption was unsustainable.

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Issues: Whether export goods initially shipped under the DEEC scheme, after de-logging from the DEEC book, ceased to be DEEC exports so as to qualify for the re-import benefit under Notification No. 94/96-Cus. and the extended period for re-import.

Analysis: The initial export was admittedly made under the DEEC scheme, but the quantity was later de-logged from the DEEC book. The earlier view that de-logging did not alter the character of the shipping bill was rejected by following the Tribunal's earlier decision that, once de-logged, the export becomes a non-DEEC export. On that basis, the extended time for re-import granted by the competent authority could not be ignored, and the ratio of the decision relied upon by the Revenue was distinguished because it did not involve de-logging. The re-import within the extended period therefore satisfied the requirements of the exemption notification.

Conclusion: The goods were entitled to the benefit of Notification No. 94/96-Cus., and the denial of exemption was unsustainable.

Final Conclusion: The impugned order was set aside and the appeal was allowed with consequential relief.

Ratio Decidendi: Where export entries under the DEEC scheme are validly de-logged, the exports are to be treated as non-DEEC exports for the purpose of re-import exemption and the applicable re-import period under the notification.

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