Re-export of FTWZ/SEZ goods allowed under prior order on payment of redemption fine; entitlement final despite Customs' appeal

HC held re-export of goods from an FTWZ/SEZ unit was permitted by the Order-in-Original subject to payment of a redemption fine; because Customs did not challenge that Order, the entitlement to re-export has attained finality as against Customs. Although Customs has filed an appeal against the CESTAT order, there is no existing challenge or embargo preventing the re-export, and the HC declined to opine on the appeal's merits, noting it will be decided on its own record. Petition disposed.

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Issues: (i) Whether amendment of the in-bond Bills of Entry and permission to file shipping bills to facilitate re-export of the subject consignments should be permitted; (ii) Whether the Customs authorities must furnish a No Objection Certificate for amendment and filing of shipping bills to enable re-export; (iii) Whether the specified officers must decide the amendment application within a defined timeline; (iv) Whether the petitioner must deposit an amount equivalent to the redemption fine as a condition for permitting re-export.

Issue (i): Whether amendment of the in-bond Bills of Entry and permission to file shipping bills to facilitate re-export of the consignments should be allowed.

Analysis: The Order-in-Original allowed re-export subject to payment of a redemption fine and that portion was not challenged by the Customs authorities; the appellate tribunal (CESTAT) set aside confiscation and penalties for lack of jurisdiction in SEZ. The Court considered the need to enable the administrative process for amendment of in-bond bills and filing of shipping bills to give effect to the re-export direction.

Conclusion: Amendment of the in-bond Bills of Entry and permission to file shipping bills for re-export are permitted and Respondent No.5 must submit amended in-bond bills and requisite shipping bills within one week.

Issue (ii): Whether the Customs authorities must furnish a No Objection Certificate for amendment and filing of shipping bills to enable re-export.

Analysis: Although the Customs authorities have filed an appeal against the CESTAT order, there was no embargo on re-export and no challenge to the re-export direction by Customs that would justify withholding an NOC for amendment and filing of shipping bills; the Court directed administrative cooperation subject to legal rights preserved.

Conclusion: The Customs authorities are directed to furnish the No Objection Certificate within one week for the purpose of amendment and filing of shipping bills to facilitate re-export.

Issue (iii): Whether the specified officers must decide the amendment application within a defined timeline.

Analysis: To prevent delay and to implement the re-export permission, the Court prescribed timelines for submission and decision on the amendment application once documents and NOC are produced.

Conclusion: Respondent Nos.2 to 4 shall decide the application seeking amendment to the in-bond bills within two weeks of receipt of documents and the Customs NOC.

Issue (iv): Whether the petitioner must deposit an amount equivalent to the redemption fine as a condition for permitting re-export.

Analysis: The Commissioner (Appeals) had reduced the redemption fine; the Court imposed a security requirement to preserve the fiscal interest pending the Customs appeal and to permit re-export in the interim subject to judicial oversight.

Conclusion: The petitioner shall, within one week of approval to re-export by Respondent Nos.2 to 4 and prior to actual re-export, deposit an amount equivalent to the redemption fine (Rs. 1.10 Crores) in US Dollars with the Prothonotary & Senior Master to be invested in a fixed deposit for one year.

Final Conclusion: The writ petition is disposed by directing submission of amended in-bond bills and shipping bills, issuance of Customs NOC, expeditious administrative decision on amendment applications within prescribed timelines, and deposit of security equivalent to the redemption fine; the relief permits re-export subject to the stated conditions while preserving the parties' rights in pending proceedings.

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