TaxTMI 
TaxTMI 
2001 (8) TMI 442
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.... 2. Shri L.P. Asthana, ld. Advocate, mentioned that the appellants filed two Bills of Entry on 14-3-1995 for clearance of ball bearings and claimed duty-free clearance of the goods under Section 20 of the Customs Act, stating that the impugned goods were earlier exported by M/s. SKF Bearing (I) Ltd. in August, November and December, 1994; that enquiry conducted by the Department revealed that the goods were exported under DEEC Scheme and under Central Excise Bond without payment of Central Excise Duty; that the Department denied the duty-free clearance under Section 20 of the Customs Act on the ground that the phrase "exported in bond" included "Central Excise Bond" as well and confirmed the duty of Customs amounting to Rs. 61,62,848....
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....g of the expression 'in bond' and it would not detract from the validity or force of two judgments of the Madras High Court; that no legal proposition has been laid down by the Supreme Court. The ld. Counsel also mentioned that the Tribunal is taking a consistent view that in the absence of any decision of a High Court holding a contrary view the decision given by High Court is binding on the Tribunal. Reliance was placed on the decision of the Larger Bench in the case of Khanbhai Esoofbhai v. CCE, Calcutta, [1999 (107) E.L.T. 557 (T-LB)]. The ld. Advocate, therefore, contended that the decision of the Madras High Court, being the only decision of a High Court available on the subject, has to be followed. 4. He also submitted that t....
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....Countering the arguments, Shri R.D. Negi, ld. SDR, submitted that it is not dispute by the appellants that the indigenous goods were exported without payment of Central Excise Duty and the goods were exported 'in bond'; that certainly no customs bond can be executed when the goods are exported in bond out of country without payment of Central Excise duty; that under Section 20 of the Customs Act, free re-importation of goods is allowed subject to condition, inter alia, that goods were not exported in bond; that goods imported after being exported in bond would be chargeable to normal customs duty; that similar explanation was given in Notes on clause while amending Section 20 by Finance Bill, 1994. The ld. SDR, further submitted that the Su....
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....he submissions of both the sides. Section 20 of the Customs Act reads as under : "20. Re-importation of goods. - If goods are imported into India after exportation therefrom, such goods shall be liable to duty and be subject to all the conditions and restrictions, if any, to which goods of the like kind and value are liable or subject, on the importation thereof :   Provided that if such importation (other than importation of goods exported in bond or of goods produced or manufactured in a free trade zone) takes place within three years after the exportation of such goods and it is shown to the satisfaction of the Assistant Collector of Customs that the goods are the same which were exported, the goods may be admitted - (....
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....ecise connotation of a bond under the Customs Act". We find substantial force in the submissions made by the ld. SDR for Revenue. We are of the view that their Lordships of the Supreme Court were not inclined to go into the precise connotation of a bond under the Customs Act in view of the reasonings adopted by them in disposing of the appeal filed by the Government against the decision of the Madras High Court. This is evident from the words "in the circumstances" used in para 3 of the judgment where their Lordships did not feel incline to go into the precise connotation of a bond. The ratio of the judgment of the Apex Court is contained in Para 2 which is extracted below : "2. It would appear that on re-importation of the goods, t....