SHRI BALAJI APPARELS Vs. CC

JUDGEMENT

(1.) NOTIFICATION 158/95 -Cus dated 14.11.95 granted exemption from payment of basic customs duty and additional customs duty leviable under Section 12 of the Customs Act, 1962 and Section 3 of the Customs Tariff Act respectively on goods, when re -imported into India, subject to certain conditions. These conditions are:

(2.) AFTER examining the records and hearing both sides we find that the short question arising for consideration is whether the appellants satisfy the conditions of Notification No. 94/96 -Cus. The lower authorities have found that the goods re -imported are the same as those exported. No other condition of this Notification has allegedly been violated by the assessee. The only case of the Revenue seems to be that the benefit of the second Notification is not admissible to the goods which failed the first Notification. Prima facie, we are unable to sustain this view immediately. It appears to us that the goods which were exported and then re -imported were sought to be cleared for home consumption by the assessee. To such goods, prima facie, the second Notification is per se applicable. Provisions of Section 20 of the Customs Act also seem to support the assesse's case. Appellants, having made out a prima facie case, are entitled to waiver of predeposit and stay of recovery in respect of the duty amount. At this stage, the learned Counsel submits that the impugned order did not go into the merits of the case and that it dismissed the assessee's appeal (filed against the order of the original authority) on the sole ground of non -compliance with Section 129E of the Customs Act, 1962. Having found prima facie case for the appellants, we direct the lower appellate authority to dispose of the assessee's appeal on merits without insisting on any predeposit and pass a speaking order therein. To enable that authority to do so, we set aside the impugned order and allow this appeal by way of remand. Needless to say that a reasonable opportunity of being heard shall be given to the assessee. (Dictated and pronounced in open Court)