Re-import exemption under Notification No. 94/96-Cus. upheld where duty drawback conditions were satisfied despite prior MEIS benefit.

Re-imported goods were found eligible for Notification No. 94/96-Cus. because the substantive re-import conditions were satisfied on the facts recorded by CESTAT. The Tribunal noted that the goods had originally been exported under a duty drawback scheme, and that duty drawback falls within the scheme contemplated by the notification. Earlier availing of MEIS did not by itself defeat the exemption where the notification's core conditions were met. On that basis, the customs demand was held unsustainable and relief on re-import duty, with consequential benefits in accordance with law, followed.

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Issues: Whether the appellant was entitled to the benefit of Notification No. 94/96-Cus. dated 16.12.1996 on re-import of the exported goods, notwithstanding the earlier availing of duty drawback and MEIS benefit.

Analysis: The appellant had exported the goods and, on re-import, initially claimed benefit under Notification No. 158/95-Cus. When the re-export condition was not fulfilled, the appellant sought to switch over to Notification No. 94/96-Cus. The Tribunal noted that the appellant had availed duty drawback as well as MEIS, and that duty drawback falls within the scheme contemplated by Notification No. 94/96-Cus. The relevant condition for re-imported goods was thus satisfied on the facts found by the Tribunal.

Conclusion: The appellant was entitled to the benefit of Notification No. 94/96-Cus. dated 16.12.1996.

Final Conclusion: The demand could not be sustained, and the appellant obtained relief on re-import customs duty with consequential benefits in accordance with law.

Ratio Decidendi: Where re-imported goods had originally been exported under a duty drawback scheme, the benefit of Notification No. 94/96-Cus. cannot be denied merely because the exporter had also availed MEIS, if the notification's substantive conditions are otherwise met.

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