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Issues involved: The judgment deals with the issue of exemption from customs duty u/s 23 of the Sea Customs Act, 1878 for re-imported goods after repairs, and the question of identity of goods exported for repairs and subsequently re-imported.
Summary: Issue 1: Export and Import Procedures The petitioners, proprietors of a company engaged in manufacturing cloth and rayon yarn, exported worn out spinnerettes for repairs to Germany after obtaining necessary licenses. They then imported the repaired spinnerettes, following the prescribed procedures and obtaining relevant certificates and licenses. Issue 2: Customs Duty Exemption The Government notification u/s 23 of the Sea Customs Act, 1878 provides for exemption from customs duty on re-imported goods after repairs, subject to certain conditions. The petitioners sought exemption under this notification, but the Customs authorities denied it, claiming a change in the identity of the goods during the repair process. Judgment: The High Court held that the actions of the Customs authorities in denying the exemption were illegal. The Court emphasized that the identity of the goods was not lost during the repair process, as the specifications and weight of the imported spinnerettes matched those exported for repairs. The Court criticized the Assistant Collector for disregarding the certificate issued by the Director General of Technical Development and for erroneously assuming that the spinnerettes could not be repaired. The Court ruled in favor of the petitioners, declaring them entitled to the advantage of the notification and ordering the respondents to pay the costs of the petition. The Court rejected the request to hold back the writ for an appeal, thus concluding the matter in favor of the petitioners.
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