Re-import duty under Section 20 was not leviable where export had been made under a Central Excise bond, not a Customs bond.

Re-import duty under Section 20 of the Customs Act, 1962 was not leviable where the goods had originally been exported under a Central Excise exemption bond rather than a Customs bond. The provision applies only to goods exported "in bond" in the Customs sense, so the condition for duty on re-import was not met on these facts. The duty demand was therefore unjustified, and the refund claim could not be rejected on that basis, with the outcome favouring the assessee.

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Issues: Whether duty was leviable on re-import of goods under Section 20 of the Customs Act, 1962 when the original export had taken place under a Central Excise bond without payment of duty.

Analysis: The goods were exported for exhibition abroad under Central Excise exemption Notification No. 263/79 and later re-imported. Section 20 of the Customs Act, 1962 applies where the goods were exported in bond. The authority followed the interpretation that the expression "in bond" in Section 20 refers to a Customs bond and not a Central Excise bond. Since the original export here was under a Central Excise bond, the condition for demanding duty on re-import under Section 20 was not satisfied.

Conclusion: The duty demand on re-import was not justified and the refund claim could not be rejected on that basis; the decision was in favour of the assessee.

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