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Issues:
1. Interpretation of Section 20(1)(d) of the Customs Act for duty exemption. 2. Applicability of duty payment on re-importation of goods exported under an Excise bond. 3. Claim for duty drawback. Analysis: Issue 1: Interpretation of Section 20(1)(d) of the Customs Act for duty exemption The case involved a dispute regarding the duty exemption claimed under Section 20(1)(d) of the Customs Act by the manufacturers of Spark Plugs. They exported goods to West Germany and later re-imported them for repair and re-export. The Commissioner upheld their claim for duty exemption, which was challenged by the Revenue. The Tribunal noted the contention of the learned SDR that a similar issue had been decided by the Apex Court in Gaurav Distributors (P) Ltd. v. CC, New Delhi, where it was held that goods re-imported after export under an Excise bond were liable to pay Customs duty. Consequently, the Tribunal rejected the claim for duty exemption under Section 20(1)(d) and upheld the demand for duty payment on re-importation. Issue 2: Applicability of duty payment on re-importation of goods exported under an Excise bond The Tribunal, after considering the legal position established by the Apex Court in the aforementioned case, concluded that the duty on re-importation of goods exported under an Excise bond must be paid at the same rate applicable to goods of similar kind and value. Therefore, the Tribunal rejected the refund claim and confirmed the duty demand raised against the manufacturers of Spark Plugs. The Tribunal emphasized that the Apex Court's decision clarified the requirement for duty payment on re-imported goods, thereby setting aside the Commissioner's order and allowing the Revenue's appeal. Issue 3: Claim for duty drawback While rejecting the claim for duty exemption, the Tribunal granted the manufacturers of Spark Plugs the liberty to pursue their claim for duty drawback, which was pending before the authorities. The learned Counsel for the manufacturers conceded the legal position and agreed to pursue the claim for drawback separately. The Tribunal allowed the manufacturers to continue their claim for duty drawback, indicating that this aspect of the case was not affected by the rejection of the duty exemption claim. In conclusion, the Tribunal set aside the Commissioner's order, rejected the claim for duty exemption under Section 20(1)(d), confirmed the duty demand on re-imported goods, and allowed the manufacturers to pursue their claim for duty drawback separately.
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