2008 (3) TMI 292 - AT - Customs

Re-export - lower authorities had extended the time for re-export till 31-3-2007, but let export order was given on 2-4-2007 - re-export after a gap of two days should not be held against the appellant - delay in granting let export order by the authorities from the date of examination is technical fault and cannot be considered as non-compliance of the order of the authorities in terms of Notification No. 153/94 appeal of assessee is allowed

Summary

Issues:
1. Interpretation of Customs Notification No. 153/94 regarding re-export of imported goods for repair.
2. Compliance with the time frame for re-export as per the notification.
3. Denial of benefit under the notification due to delay in re-export.
4. Examination of the let export order and its impact on compliance with the notification.

Issue 1 - Interpretation of Customs Notification No. 153/94:
The case involved the interpretation of Customs Notification No. 153/94 concerning the re-export of imported goods for repair. The notification specified that goods must be re-exported within six months of importation, with a possible extension of up to one year at the discretion of Customs authorities. The appellant imported Transformer Tanks for repair under this notification.

Issue 2 - Compliance with the time frame for re-export:
The appellant submitted a request for an extension of the time limit for re-export, which was granted by the authorities. Despite filing shipping bills for re-export within the extended period, the authorities issued a show cause notice for encashment of the Bank Guarantee due to perceived non-compliance with the time frame specified in the notification.

Issue 3 - Denial of benefit under the notification:
The adjudicating authority and the Commissioner (Appeals) denied the benefit of Notification No. 153/94 to the appellant, citing that re-export was done beyond the stipulated period of one year. The Commissioner (Appeals) emphasized that the power to grant an extension was limited to six months, and re-export beyond one year was not permissible under the notification.

Issue 4 - Examination of the let export order and its impact:
The appellant had filed shipping bills for re-export, and the examination report confirmed the identification of the goods for export. Despite a slight delay in the let export order, the goods were eventually exported. The Tribunal considered this technical delay as not constituting non-compliance with the notification requirements.

In conclusion, the Tribunal set aside the impugned order, ruling in favor of the appellant. The delay in the let export order was deemed a technical fault, and the re-export within a short period after the extended deadline was considered compliant with the notification. The Tribunal emphasized the discretionary power granted to Customs authorities for extending the re-export period and overturned the decision denying the benefit under Notification No. 153/94.