2000 (8) TMI 827

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....nd and returned to the manufacturer by the foreign buyer for reconditioning/rectification is allowed clearance without payment of Customs duty under Section 20 of the Customs Act, 1962. 3. Briefly stated the facts of the case are that M/s. East Coast Enterprises Ltd., Calcutta, the appellant, are manufacturers of Permanent Magnetic of Chucks and Demagnetisers. They exported 89 pieces of Permanent Magnetic Chucks and 40 pieces of Demagnetisers to a Company in U.S.A. on 21-7-1994 under cover of AR-4 (export in bond) and Shipping Bill. On receipt, the foreign buyer M/s. Enco Manufacturing Company found 74 pieces of Permanent Magnetic Chucks and 40 pieces of Demagnetisers rusty and, therefore, returned the same to Calcutta by the vessel....

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....a reported in 1984 (17) E.L.T. 306 (Mad.) wherein it was held that the expression 'where the goods were exported in bond' as appearing in the said Section of the Act would cover only the goods exported in Customs bond and not the goods exported in Excise bond. 5. Countering the above arguments, Shri T. Premkumar, ld. SDR representing the Revenue, submits that the term 'bond' used in Section 20 ibid covers the bonds taken under Customs as well as Central Excise and as such the goods on re-importation are liable to Customs Duty, countervailing duty and also subject to limitations and restrictions imposed in the Exim Policy. In this connection, he invites our attention to the decision of the Delhi Bench of the Tribunal in Collector of ....

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....though strictly speaking it was not a concession and it had been contended by the ld. advocate to Government of India that expression 'bond' would also include Central Excise bond. But no reason could be advanced by him and this is what led the Hon'ble High Court of Madras to pronounce judgment in the case of Polysetty Somasundaram (supra). 10. On the other hand, we have now considered the reasons given by the Revenue as already stated above. We are in agreement with the reasonings given above by the Revenue that the expression 'bond' is not qualified by my words "Excise" of "Customs". The same Clause (c) also refers not only to Customs duty but also to Excise duty. No bond obviously could be taken under the Customs Act for waiver of Exc....