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Issues:
1. Interpretation of Section 20 of the Customs Act, 1962 regarding payment of additional customs duty on re-importation of goods produced or manufactured in India. Analysis: The appellant imported goods initially, which were later rejected by the foreign buyer and re-imported. The advocate argued that no duty should be paid on re-importation as excise duty was already paid at the time of initial export without claiming any drawback or rebate. The lower appellate authority rejected the appeal, leading to this case. The learned S.D.R. contended that Section 20 only exempts basic customs duty, not additional customs duty. However, the tribunal disagreed, citing Clause (c) (iii) of the proviso to Section 20 (1), which states that when goods are exported without payment of excise duty, excise duty is payable on re-importation. The tribunal reasoned that if indigenous goods are exported with excise duty paid, they can be re-imported without further duty, but if exported without excise duty payment, customs duty equal to excise duty is payable on re-importation. The tribunal concluded that no additional customs duty equal to excise duty was required at the time of re-importation under Section 20. The appellants were deemed entitled to a refund, pending verification of non-receipt of rebate or drawback on the initial export. Consequently, the appeal was allowed in favor of the appellant.
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