2004 (1) TMI 473

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....he Respondent. [Order]. -  Heard both sides and perused the case records. The appellants imported 500 kg. of Doxycycline HCL and paid customs duty of Rs. 3,67,682/- through DEPB credit and additional customs duty of Rs. 2,12,740/- by cash. The impugned goods were subjected to chemical test in the factory of the appellants at Aurangabad when the same was found to be sub-standard. The Mod....

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....issioner has stated that both the importations are independent and therefore, the claim of the appellants that they have paid duty twice on the same consignment is not correct. With these observations, he rejected the refund claim. On appeal, the Commissioner (Appeals) has stated as follows :- "The Asstt. Commissioner in the impugned order has mentioned that the matter of DEPB re-credited claim....

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....d goods found to be sub-standard for clearance from customs and hence this is not a case of refund of duty as provided under Section 27 of Customs Act, 1962 and accordingly rejected the refund application. I am inclined to agree with the view of the lower authority as Section 27 has not been conceived for such a situation and there is a provision under Section 74 of Customs Act, 1962 to take ca....

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....msp;I find that the relevant Para 7.50A of the Handbook of Procedures 1997-2002 does allow re-export of defective goods. Against such re-export, the Commissioner of Customs is required to generate a certificate based on which the appellants could have obtained a fresh DEPB from the licensing authority. The para also stipulates that such fresh DEPB shall have the same port of registration and shall....