ATA Carnet customs refund depends on re-export within the notification's maximum permitted period

Under the ATA Carnet exemption scheme, customs duty was refundable only where imported goods were re-exported within the six-month period permitted by Notification No. 157/1990-Cus., as extended by a further six months. The first consignment, re-exported within one year of import, satisfied the maximum permissible period and refund was admissible. The second consignment, re-exported after one year, fell outside the extended limit and the notification conditions were not met, so refund was not admissible for that item.

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Issues: Whether customs duty paid on goods imported under ATA Carnet facility under Notification No. 157/1990-Cus was refundable where one consignment was re-exported within one year of import and the other was re-exported after one year.

Analysis: The notification required re-export within six months of import, with a further extension not exceeding six months. On the facts, the first consignment was re-exported within one year from the date of import, which was treated as falling within the extended period contemplated by the notification. The second consignment was re-exported after one year, beyond the maximum permissible extension, and the conditions of the notification were not satisfied for that item.

Conclusion: Refund of customs duty was admissible for the first consignment and not admissible for the second consignment.

Final Conclusion: The appeal succeeded only in part, with refund granted for one consignment and denied for the other.

Ratio Decidendi: Where an exemption notification governing ATA Carnet imports permits export within six months and extension up to a further six months, duty is not payable if re-export occurs within that maximum period, but becomes payable if re-export is delayed beyond it.

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