Buffer scheme customs exemption applied where Steel Authority of India was the real importer, making duty recovery refundable.

Customs duty on a consignment imported under the buffer scheme was treated as recoverable only if the appellant was the importer; the Steel Authority of India's communication showed that it was the real importer and that duty had been paid by the customer by mistake. On that factual basis, exemption under the buffer scheme applied, and the Tribunal's contrary view was found erroneous. The duty recovered was therefore held refundable to the party from whom it had been collected, and the order under challenge was set aside.

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Issues: Whether the import was made by the appellant or by the Steel Authority of India, and whether the duty recovered was liable to be refunded.

Analysis: The communication from the Steel Authority of India showed that the consignment had been imported under the buffer scheme and that the customer had paid customs duty by mistake. On that basis, the import was treated as having been made by the Steel Authority of India and not by the appellant. As the real importer fell within the buffer scheme, exemption from customs duty was held to apply, and the Tribunal's contrary view was found erroneous.

Conclusion: The appeal was allowed, the order under challenge was set aside, and refund of any duty recovered was directed to be made to the party from whom it had been recovered.

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