Refund of duty on export clearances sustained after legal ban made packed goods non-marketable.

Duty paid on export goods cleared from the factory and intended exclusively for export was treated as refundable when a later legal ban on plastic packaging rendered the goods incapable of being marketed in domestic or export form. On these facts, the duty paid on the export clearances was found refundable, and the relief granted by the lower authority was sustained. The Department's challenge therefore failed, and the refund claim was upheld in favour of the assessee.

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Issues: Whether duty paid on export goods was refundable or rebateable when the goods, though cleared on payment of duty, were subsequently seized and rendered non-marketable because of a legal ban on plastic packaging.

Analysis: The goods were admittedly cleared from the factory on payment of excise duty and were meant exclusively for export. The later legal prohibition made the goods incapable of being marketed either in the domestic market or for export in the packed form. In these peculiar circumstances, the duty paid on such export clearances was held to be refundable, and the order granting relief was found to be justified.

Conclusion: The duty refund claim was upheld in favour of the assessee and the Department's challenge failed.

Final Conclusion: The appeal was rejected and the relief granted by the lower authority was sustained.

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