Specific customs exemption notifications control re-export benefits, and general trade policy cannot override their strict conditions.

A specific customs exemption notification governs re-export of unutilised imported goods, and its benefit can be claimed only within the notification's strict conditions. The notification allowed re-export only where the goods were defective or unfit for use and the claim was made within the prescribed period. A general permission under the Foreign Trade Policy to export goods in the same or substantially the same form could not enlarge the exemption or override those conditions. On that basis, the importer was held not entitled to exemption from duty on re-export, and the claim failed in favour of the Revenue.

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Issues: Whether the importer was entitled to exemption from customs duty on re-export of unutilised imported goods under Notification No. 93/2004-Cus dated 10.09.2004 and Clause 2.35 of the Foreign Trade Policy.

Analysis: The import was governed by a specific exemption notification issued under Section 25(1) of the Customs Act, 1962, and the benefit of exemption could be claimed only in accordance with its terms. The notification permitted re-export only on specified contingencies, namely where the materials were defective or unfit for use and the claim for re-export was made within the prescribed period. The general permission in the Foreign Trade Policy for export of goods in the same or substantially same form could not override the specific conditions attached to the notification. Since the case did not satisfy the notified contingencies, the earlier tribunal view relied upon by the assessee was held inapplicable.

Conclusion: The importer was not entitled to exemption from duty on re-export of the unutilised goods, and the issue was answered in favour of the Revenue.

Ratio Decidendi: Where imports are covered by a specific exemption notification, re-export and exemption can be claimed only within the strict terms of that notification, and a general policy provision cannot enlarge the exemption.

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