Re-export condition for marine containers: documentary evidence was accepted, and penalty and confiscation were not sustained.

Duty, penalty and confiscation relating to imported marine containers were examined under Notification No. 104/94, which exempted such containers subject to re-export within six months. The appellant accepted liability for two containers whose re-export was not proved, but the Tribunal accepted the evidence for the remaining containers, holding that multimodal transport documents and supporting affidavits were sufficient in the circumstances to establish re-export. It further held that penalty and confiscation were not justified merely because some containers were not satisfactorily accounted for, particularly given the notification's trade-facilitation object. Accordingly, the demand was set aside for the four containers found re-exported, and penalty and confiscation were also set aside; liability remained only for the two unproved containers.

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Issues: Whether the demand of duty, penalty and confiscation in respect of marine containers was sustainable where the appellant claimed compliance with the re-export condition under Notification No. 104/94.

Analysis: The notification granted exemption to imported marine containers subject to their re-export within six months. The appellant accepted liability for two containers whose re-export could not be established. For the remaining containers, the Tribunal accepted the evidence of re-export, holding that the multi modal transport documents and supporting affidavits were sufficient in the circumstances. It further held that penalty and confiscation were not warranted merely because some containers were not satisfactorily accounted for, especially where the object of the notification was to facilitate the movement of containers in international trade.

Conclusion: The demand was set aside for the four containers found to have been re-exported, and the penalty and confiscation were also set aside; liability remained only for the two containers not proved to have been re-exported.

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