2005 (12) TMI 436 - AT - Customs

Summary

Issues:
1. Interpretation of conditions under Notification No. 158/95-Cus.
2. Application for extension of re-export period.
3. Claiming duty under Notification No. 94/96-Cus.
4. Eligibility for duty drawback under Section 74 of the Customs Act.

Analysis:
1. The appellants exported cutting tools under a specific Shipping Bill and re-imported them under a different Bill of Entry, seeking benefits under Notification No. 158/95-Cus. The condition required re-export within six months, extendable by the Commissioner of Customs. The goods were re-exported after the initial six-month period, leading to a duty demand. The Tribunal held that the date of clearance post re-importation, not the filing of the Bill of Entry, marked the start of the re-export timeline. As the appellants failed to re-export within one year, the duty demand under Notification No. 158/95-Cus. was upheld.

2. The appellants contended they applied for a six-month extension within the initial period, citing a Customs Circular for calculation from the clearance date. However, their extension request made after the initial six months was rejected. The Tribunal ruled that the rejection was lawful as the goods were re-exported after one year, breaching the Notification's conditions.

3. The Revenue argued against allowing duty assessment under a different Notification (No. 94/96-Cus.) post re-importation under Notification No. 158/95-Cus. The Tribunal agreed, stating that benefits must be claimed at the time of import. Switching notifications post-import was impermissible, and the appellants' actions did not align with the conditions of either notification.

4. Regarding duty drawback under Section 74 of the Customs Act, the Tribunal noted that since the goods were eventually re-exported, the appellants could claim the drawback before the appropriate authority. The duty charged under Notification No. 158/95-Cus. was deemed correct, given the failure to re-export within the stipulated timeline.

In conclusion, the Tribunal dismissed the appeal with the modification related to the duty drawback claim, affirming the duty demand under Notification No. 158/95-Cus.