Duty on re-imported goods may be recovered for breach of conditions, with drawback still to be considered on subsequent re-export.

Re-imported goods cleared for re-processing and re-export under Notification No. 158/95-Cus. lose the benefit of duty-free clearance if the stipulated conditions are not fulfilled within time, so duty may be recovered on breach of the notification terms. Where such goods are subsequently re-exported, the original authority must consider sanction of drawback in respect of the duty recovered on the re-imported goods. The operative effect is that delayed re-export does not preserve the exemption, but it may still trigger consideration of drawback relief after duty payment.

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Issues: Whether duty liability on re-imported goods cleared for re-processing and re-export, after breach of the notification conditions, should be accompanied by consideration of drawback when the goods are subsequently re-exported.

Analysis: The dispute involved re-imported bulk drugs cleared under Notification No. 158/95-Cus. for re-processing and re-export, but the goods were exported only after the stipulated period. The Tribunal followed its earlier decision on the same issue, which held that where the conditions for duty-free clearance on re-importation were not fulfilled in time, duty could be recovered, but if the goods were subsequently re-exported, the original authority should consider sanction of drawback in respect of the duty recovered on the re-imported goods.

Conclusion: The original authority was directed to consider sanction of drawback if duty had been recovered on the re-imported goods.

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