TaxTMI 
TaxTMI 
2006 (5) TMI 289
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....n. 2. The brief facts of the case are that the appellants herein exported 25.904 Mts of Rayon Tyre Yarn vide Shipping Bill dt. 18-3-1993 to a company in Germany, which was to process it into 'Single Ply Twisted Cord' for making 'Two Ply Twisted Cord'. However, during the course of processing, defects were noted in the form of discoloration of yarn, sticky filament, breakages of yarn etc. and consequently it was agreed between the exporter and the foreign buyer to send the goods back to India. The re-imported goods were subjected to first check examination which revealed that identity of goods remained intact in respect of 18 pallets of exported yarn but in respect of 61 pallets, the identity was not established due to change in the fo....
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.... goods exported are entirely; different from the goods re-imported, having different nature and independent identity and usage. The transformation of nylon yarn into tyre cord is not minor and hence the decision of the Hon'ble High Court in the case of Assistant Collector of Customs and Ors. v. Bindewasina Prasad - 1974 Tax Law Report 897 relied upon by the appellants to support of their claim that the benefit of Section 20 should not be denied on the sole ground that the goods re-imported are not in the same form of the goods exported, is distinguishable as in that case the Zinc ash exported only underwent the process of refining for conversion into zinc ingots. Further, the issue was not finally decided by the Hon'ble Calcutta High Court ....