CENTURY RAYON Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THE above appeal arises out of the order of the Commissioner of Customs (Appeals) Mumbai holding that the benefit of exemption from payment of duty in terms of Section 28 of the Customs Act, 1962 is not available to re -import of the goods in question namely Rayon Tyre Cord Yarn.

(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 form of the goods and established only for 18 pallets weighing 8430.4 kgs. Duty was paid under protest and a claim was filed on 5.8.1994 for refund of Rs. 21,09,490/ -, on the ground that no duty was required to be paid in terms of Section 20 of the Customs Act, 1962. The refund claim was sanctioned by the Assistant Commissioner; the Revenue preferred an appeal before the Commissioner (Appeals), who allowed the appeal and set aside the adjudication order on the ground that the benefit was not available to the exporters; hence this appeal.

(3.) WE have heard both sides. The relevant portion from Section 20 of the Customs Act is reproduced below: