DEEC scheme refund turns on amended licence, export-use condition, and no drawback claim for imported inputs.

Under the DEEC scheme, refund of duty paid on import clearance was justified where the goods were imported within the permitted quantity, the apparent value excess resulted only from exchange-rate fluctuation and delay in supply, and the licence was bona fide amended to delete the individual item value restriction. The insistence on a further endorsement to the amendment was treated as unwarranted. Refund was also supported by the facts that the imported goods were used only in manufacture of export goods and no drawback had been claimed, making consequential relief available.

---

---

Issues: Whether the appellants were entitled to refund of duty paid on import clearance under the DEEC scheme after amendment of the import licence deleting the individual item value restriction.

Analysis: The import of the goods was within the quantity restriction under the DEEC licence, and the excess value arose only because of exchange-rate fluctuation and delay in supply. The amendment to the licence was made on the appellants' request to permit the import of 60 kgs. of material, and the insistence on a further endorsement to the amendment was found unjustified. It was also accepted that the imported goods had been used only in the manufacture of export goods and that no drawback had been availed in respect of the duty paid.

Conclusion: The appellants were entitled to refund of the duty paid, with consequential relief.

Final Conclusion: The duty liability was held refundable in view of the amended licence, the export-oriented use of the goods, and the absence of any drawback benefit.

Ratio Decidendi: Where imported goods are cleared under the DEEC scheme within the permitted quantity and the value excess arises only from exchange-rate fluctuation, a bona fide licence amendment deleting the value restriction can justify refund of the duty paid if the goods are used for export manufacture and no drawback is claimed.

---