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Challenging rejection of re-export application under Customs Act and Circular policy for sale to SEZ units. Analysis: The petitioner contested the order rejecting the re-export application under Section 69(1) of the Customs Act concerning the sale to units in a Special Economic Zone (SEZ). The argument posited was that selling to SEZ units should be considered re-export, citing the Handbook of Procedures and relevant SEZ definitions. The petitioner's counsel contended that the Chief Commissioner erred in not recognizing this interpretation. Additionally, it was argued that the Circular dated 14th January, 2003 permitted such re-exports. Upon review, the court found that the Chief Commissioner correctly concluded that selling to SEZ units did not constitute re-export under Section 69(1) of the Customs Act. The court noted that the petitioner had initially requested to clear goods on payment of duty but later sought permission for re-export to avoid auction. Despite a previous court order allowing the petitioner to seek re-export permission, the Commissioner of Customs declined the request based on specified reasons. The court upheld the Chief Commissioner's decision, emphasizing that the goods were not intended for export outside India but for sale within the country, specifically to an SEZ unit. The court highlighted that the Handbook of Procedures' provisions on deemed exports did not apply due to Section 69's explicit requirement for re-export outside India. Consequently, the court dismissed the petition, deeming it meritless and affirming the Chief Commissioner's order as legally sound.
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