Re-import customs duty is not refundable after re-export unless the claim fits the statutory drawback scheme.

Customs duty paid on re-import of goods exported earlier under bond is not refundable merely because the goods are later exported again. The Tribunal held that duty levied on re-import under section 20 of the Customs Act is customs duty, not excise duty, and the Act contains no general provision for refund on a subsequent export. Any relief after re-export must be claimed under the statutory drawback mechanism under section 74. As the importer did not seek drawback, the refund claim was not maintainable and was rightly rejected.

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Issues: Whether customs duty paid on re-import of goods exported earlier under bond, and later exported to another buyer, was refundable.

Analysis: The goods had been exported without payment of central excise duty and, on re-import after rejection by the consignee, customs duty equivalent to the unpaid excise duty was levied under Section 20 of the Customs Act. The Tribunal held that the Customs Act contained no provision for refund of import duty merely because the goods were subsequently exported again. Such post-import export could only be considered under the drawback mechanism under Section 74 of the Customs Act. The payment made on re-import was customs duty, not excise duty, and the appellant had not sought drawback.

Conclusion: The refund claim was not maintainable and was correctly rejected.

Ratio Decidendi: Where customs duty has been paid on re-import of goods, a subsequent export does not by itself create a right to refund unless the claim is covered by the statutory drawback scheme.

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