2011 (3) TMI 1297 - AT - Customs

Tribunal overturns rejection, allows re-export of duty-free imported parts

CRAFTSMAN AUTOMATION PVT. LTD. Versus COMMR. OF CUS., CHENNAI

CRAFTSMAN AUTOMATION PVT. LTD. Versus COMMR. OF CUS., CHENNAI - 2011 (271) E.L.T. 554 (Tri. - Chennai) Issues:Appeal against rejection of re-export request for duty-free imported parts of printing machinery under Notification No. 93/2004-Cus.Analysis:The appellants imported parts of printing machinery for job work, but due to the supplier's refusal to continue, they requested re-export of the balance of goods. The Commissioner rejected the request, stating that since some parts were used for manufacturing sub-assemblies, the remaining parts cannot be considered unfit for use. The appellants argued that as they are not the owners of the goods and the supplier wants the return, re-export should be permitted. They cited precedents and Foreign Trade Policy provisions allowing re-export of goods in similar circumstances.Upon review, the Tribunal found that while the goods were not unfit for use, the supplier's refusal to allow further job work made it impossible for the appellants to keep the goods. The Tribunal noted that the Foreign Trade Policy permits re-export of goods without import/export restrictions. As the goods were duty-free, the appellants' request for re-export should be governed by Section 74 of the Customs Act, 1962 on drawback quantum. The Tribunal disagreed with the Commissioner's reasoning and set aside the rejection, ordering the Commissioner to allow re-export upon proof that the goods to be exported are the same as those imported.In conclusion, the Tribunal allowed the appeal, emphasizing that the Commissioner's rejection of the re-export request was not justified, as the goods were duty-free and the conditions for re-export were not violated. The Tribunal directed the Commissioner to permit re-export, subject to verification of the goods' identity with the imported ones.