Jobbing exemption covers part-processing of imported goods where procedural conditions and re-export requirements are satisfied.

Segregation of insulation and metal from imported cable scrap was treated as "jobbing" for exemption under Notification No. 32/97-Cus. read with the Customs (IDCRDMEG) Rules, 1996. The notification covered duty-free import for execution of an export order by jobbing, provided the prescribed procedure was followed and the imported goods and resultant products were re-exported. "Jobbing" was not confined to a process ending in a complete manufactured article; undertaking part of the processing was sufficient. Where the importer separated the outer insulation from the metallic portion and re-exported the resulting material in compliance with the Rules, the exemption was available.

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Issues: Whether segregation of the insulation and metal from imported cable scrap amounted to jobbing so as to qualify for exemption under Notification No. 32/97-Cus. read with the Customs (IDCRDMEG) Rules, 1996.

Analysis: The exemption notification granted duty-free import of goods for execution of an export order for jobbing, subject to compliance with the prescribed procedure and re-export of the imported goods and resultant products. The expression "jobbing" in the policy did not require that the activity must culminate in a complete manufactured article; it was sufficient if the importer undertook a part of the process. The appellant separated the outer insulation from the metallic portion of the imported cables and re-exported the resulting products. The record showed compliance with the procedural requirements under the Rules, and the reliance on hazardous-waste material was not relevant to the show cause notice or to the fact that the segregated material was exported.

Conclusion: The activity constituted jobbing and the appellant was entitled to the benefit of the exemption notification.

Ratio Decidendi: Jobbing under the exemption scheme includes a part-process of processing or working upon imported goods, and does not require completion of a manufactured article where the prescribed procedural conditions and re-export requirements are satisfied.

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