Returned goods for repacking from own depots did not attract duty demand where no third-party clearance or revenue loss arose.

Duty demand on goods returned from an appellant's own depots to its factory for repacking was treated as unsustainable because the goods were not cleared to any third-party buyer and the movement did not create any revenue implication. The analysis emphasises that where returned goods are merely brought back for repacking, without a taxable clearance or duty consequence, insistence on duty demand is not justified. On that basis, the demand was stated to be unsustainable and the appeal was allowed.

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Issues: Whether duty could be demanded on goods returned from the appellant's own depots to the factory for repacking without any clearance to a buyer and without any revenue implication.

Analysis: The returned goods came only from the appellant's own depots and were not cleared to any third-party buyer. The goods were sent back merely for repacking, and no revenue loss or duty implication arose from the transaction. In these circumstances, insistence on duty demand was not justified.

Conclusion: The demand of duty was unsustainable and the appeal was allowed.

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