Brand rate drawback is unavailable for mere relabelling and repacking of re-exported imported goods without qualifying manufacture.

Brand rate drawback under Section 75 of the Customs Act, 1962 is confined to customs duties used in the manufacture, processing, or other prescribed operation on exported goods. Mere re-export of imported goods after removal of original packing and affixing fresh labels, without value addition, does not satisfy that requirement. Chapter Note 10 of Chapter 29 treats labelling, relabelling, and repacking as manufacture only for limited purposes relating to products of that Chapter and marketability, not as a general basis for drawback. The proper remedy, where available, is re-export drawback under Section 74 subject to its conditions. Accordingly, a Section 75 claim on these facts is not maintainable.

---

---

Issues: Whether the claim for brand rate drawback under Section 75 of the Customs Act, 1962 was maintainable where the imported goods were re-exported after removing the original packing and relabelling, and whether such activity could be treated as manufacture for the purpose of drawback.

Analysis: Section 75 permits drawback only in respect of customs duties used in the manufacture, processing, or other operation on exported goods in accordance with the prescribed rules. Chapter Note 10 of Chapter 29 of the Central Excise Tariff Act, 1985 treats labelling or relabelling of containers, repacking from bulk to retail packs, or similar treatment as manufacture only in relation to products of that Chapter and for the limited purpose of rendering the product marketable to the consumer. The claim here concerned re-export of the same imported goods after removal of original packing and affixing fresh labels, without any value addition. On that footing, the goods were not shown to have undergone manufacture of the kind that would justify drawback under Section 75. The proper route, if available, was re-export under Section 74, subject to compliance with that provision.

Conclusion: The claim under Section 75 was not maintainable and was correctly rejected.

Final Conclusion: The revision application failed, and the order rejecting the drawback claim was upheld as legal and proper.

Ratio Decidendi: Drawback under Section 75 of the Customs Act, 1962 is not available for mere re-export of imported goods after relabelling or repacking unless the statutory conditions for manufacture or processing of exported goods are satisfied.

---