Re-imported goods exemption denied where exported fuel injection pumps lost their separate identity inside imported diesel engines.

Fuel injection pumps exported and later incorporated into diesel engine assemblies abroad did not retain the separate identity required for re-importation exemption under Notification No. 94/96-Cus. The exemption applied only to the same goods previously exported, and goods cleared as part of imported engines could not be treated as re-imported pumps. On that basis, the notification condition was not satisfied and the exemption claim was rejected.

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Issues: Whether fuel injection pumps exported and later fitted into imported diesel engines could be treated as re-imported goods eligible for exemption under Notification No. 94/96-Cus.

Analysis: The exemption applied only where the goods re-imported were the same as those earlier exported. The exported fuel injection pumps had been fitted into engine assemblies abroad and were presented for clearance as part of imported engines, not as separate re-imported pumps. On that basis, the goods had lost their separate identity and could not satisfy the condition of identity required by the notification. The later Board clarification and the earlier Tribunal view supported the same interpretation, but the denial of benefit rested on the substantive non-fulfilment of the notification condition.

Conclusion: The claim for exemption was not sustainable and the denial of benefit was upheld against the assessee.

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