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Issues:
Import of goods for demonstration purpose, provisional assessment of duty, re-export of goods, calculation of duty payable, requirement of import license, application for re-export, Section 74 of the Act, entitlement to duty drawback, conditions for re-export, identification of goods, rates of drawback, interest on duty payable. Analysis: The case involved the import of a horizontal drilling system for demonstration purposes, provisionally assessed to duty with the condition of re-export within three months. The importer failed to re-export within the stipulated time and sought an extension, eventually requesting permission to retain the goods in India. The Customs demanded duty based on the declared value by the importer and required the import license. The importer contended that the goods were not intended for use in India and were initially imported for demonstration. The Commissioner agreed that an import license was not needed but upheld the duty calculation based on the declared value, leading to the appeal. The appellant applied for re-export of the goods under Section 74 of the Act, claiming entitlement to a duty drawback exceeding 98% of the duty payable. The appellant argued that since the goods were not used post-importation, they should receive the full drawback. The Departmental Representative objected to this prayer being raised for the first time before the Tribunal but agreed to consider it without sending the matter back to the Commissioner. Section 74 permits re-export of duty-paid goods eligible for drawback, with conditions for identification and entitlement to drawback rates based on usage post-importation. The Tribunal noted that the goods were cleared for import under the understanding of eventual export, with duty paid at 2% of the total payable amount. The appellant was deemed entitled to a drawback of 98% of the duty paid, subject to demonstrating the identity of goods at export, ensuring non-usage, and considering interest on the duty payable. The appeal was allowed, and the impugned order was set aside, highlighting the conditions for re-export and entitlement to duty drawback under Section 74 of the Act.
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