1994 (2) TMI 82 - CGOVT - Customs

Summary

Issues Involved:
1. Whether the re-export of bobbins satisfies the requirement of "those very goods" under Section 74 of the Customs Act, 1962.
2. Whether the re-exported bobbins were in the same original condition as at the time of import.
3. Whether the goods imported (yarn wound on cops) can be classified into two separate headings for the purpose of drawback under Section 74.
4. Whether the review applications were time-barred under Section 129DD of the Customs Act, 1962.

Detailed Analysis:

Issue 1: Re-export of Bobbins as "Those Very Goods"
The main contention was whether the re-export of bobbins satisfies the requirement of "those very goods" under Section 74 of the Customs Act, 1962. The Government held that the basic requirement of Section 74, i.e., "those very goods" to be re-exported, was not fulfilled. The imported goods were yarn wound on cops, and therefore, sending back the cops cannot be treated as re-export of the imported goods. The precedent case of H.S. Mehra v. Union of India (AIR 1968 Delhi 142) was cited to support this interpretation.

Issue 2: Original Condition of Re-exported Bobbins
The Government argued that the re-exported bobbins were not in the same original condition as they were at the time of import. The bobbins had been used in the manufacturing activity of unwinding yarn, thereby losing their original identity. Consequently, the claim did not fulfill the statutory requirement under Section 74 (1)(b) of the Customs Act, 1962.

Issue 3: Classification of Imported Goods
The respondents argued that the spools were durable containers capable of repeated use and were separately assessed at the time of import. They relied on Rule 5(b) of the General Rules of Interpretation, which states that packing materials and containers suitable for repetitive use should be classified separately. However, the Government held that it is not permissible to break up imported goods into two parts to carve out one description to which Section 74 would apply. The imported goods were a composite commodity (yarn wound on spools/cops), and the re-export of spools/cops after unwinding the yarn did not satisfy the condition of re-exporting "those very goods."

Issue 4: Time-Barred Review Applications
The respondents contended that the review applications were time-barred as they were filed after the stipulated period of three months provided in Section 129DD. However, the Government dismissed this argument, stating that the respondents did not prove that the provision of Section 129DD(4) was governed by any time limit.

Conclusion:
The Government upheld its previous decision dated 28-9-1993, stating that the re-export of bobbins did not satisfy the requirement of "those very goods" under Section 74 of the Customs Act, 1962. The re-exported bobbins were not in the same original condition as at the time of import, and the imported goods could not be classified into two separate headings for the purpose of drawback. The review applications were not considered time-barred. Consequently, the impugned orders-in-appeal were set aside, and the orders-in-original were restored.