Export-bound excisable goods returned unexported can still qualify for remission under the export-remission framework.

Goods cleared under bond for export, but not actually exported and later returned to the factory, were treated as falling within the export-remission framework rather than as final clearance for home consumption. The Tribunal followed the prior ruling relied on by the assessee and distinguished the contrary decision, holding that remission could not be denied merely because Rule 21 of the Central Excise Rules, 2002 was said not to be satisfied. The impugned order was set aside and the appeal was allowed.

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Issues: Whether remission of duty was admissible where excisable goods cleared under bond for export were returned to the factory without export and were claimed to be not marketable and liable to destruction.

Analysis: The goods had been removed from the factory for export under bond, but they could not be presented before the customs officer for export and were received back in the factory. On these facts, the Tribunal followed the earlier view that goods not exported after clearance for export cannot be treated as cleared for home consumption in the manner contended by the department. The cited contrary decision was distinguished, and the case was held to be covered by the prior ruling relied upon by the assessee.

Conclusion: Remission could not be denied on the ground that Rule 21 of the Central Excise Rules, 2002 was not satisfied; the appeal was allowed and the impugned order was set aside.

Ratio Decidendi: Goods removed under bond for export, but not exported and returned without the export process being completed, are not to be treated as finally removed for home consumption for the purpose of denying remission where the governing export-remission framework applies.

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