Export drawback attaches once goods cross territorial waters on a foreign voyage, even if the vessel later returns before delivery.

For export drawback under the Customs Act, goods are treated as exported once they are carried beyond India's territorial waters on a voyage to a foreign destination, because that movement constitutes taking the goods to a place outside India in the relevant statutory sense. The commercial context of a C.I.F. contract and the completion of exportation by crossing the territorial waters were treated as decisive; later return of the vessel for engine trouble did not undo the completed export. On that basis, goods loaded for export and taken beyond territorial waters remained eligible for drawback under Section 75.

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Issues: Whether goods loaded on a vessel and carried beyond the territorial waters of India, but not ultimately delivered at a foreign port because of engine trouble and return voyage, were exported for the purpose of drawback under Section 75 of the Customs Act, 1962.

Analysis: Section 75 allows drawback where goods manufactured in India have been entered for export and clearance for exportation has been ordered, subject to the prescribed rules. The expression "export" in Section 2(18) means taking out of India to a place outside India. The Court held that, on the facts, the goods had crossed the territorial waters and reached the high seas, which constituted a place outside India in the relevant commercial and statutory sense. The passing of title under the C.I.F. contract and the movement beyond territorial waters completed the export; subsequent return of the vessel to India did not undo that completion. The contextual meaning of "place" was adopted to give effect to the export drawback scheme.

Conclusion: The goods were exported within the meaning of the Act, and the respondent was entitled to drawback under Section 75.

Ratio Decidendi: For the purpose of export drawback, goods are "taken out of India to a place outside India" once they are carried beyond the territorial waters on a voyage to a foreign destination, even if the vessel later returns before delivery, provided exportation has otherwise been completed.

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