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Issues Involved:
Interpretation of the phrase "exported in bond" in proviso to Section 20 of the Customs Act. Detailed Analysis: 1. Issue Interpretation - The main issue in this appeal was whether the phrase "exported in bond" in the proviso to Section 20 of the Customs Act refers only to a bond executed under the Customs Act or includes a bond executed under the Central Excise Act and Rules. 2. Appellant's Argument - The appellant, M/s. Gaurav Distributors, claimed duty-free clearance of goods under Section 20, stating that the goods were earlier exported under a DEEC Scheme and Central Excise Bond. The appellant's advocate argued that the term "bond" in Section 20 refers only to a Customs bond, citing a judgment of the Madras High Court to support this interpretation. 3. Legal Precedents - The advocate highlighted that both a Single Judge and a Division Bench of the Madras High Court had held that the phrase "in bond" should be confined to a Customs bond only. The advocate also emphasized that the Supreme Court did not provide a definitive interpretation on this matter, and therefore, the Madras High Court's decision should be followed as the only available High Court ruling on the issue. 4. Contrary Arguments - The Respondent argued that goods exported without payment of Central Excise Duty and "in bond" are liable to normal customs duty upon re-importation. The Respondent contended that the Supreme Court's concern in a previous case was to avoid double taxation, which is not applicable in the present case. 5. Judicial Analysis - The Tribunal analyzed the provisions of Section 20 of the Customs Act and considered the arguments presented by both parties. It noted that the Supreme Court did not delve into the precise connotation of a bond under the Customs Act in the previous case. The Tribunal concluded that the Supreme Court's decision in the earlier case established that duty is payable if goods initially exported under bond are re-imported, to avoid double taxation. 6. Final Decision - Based on the interpretation of the Supreme Court's decision and the absence of circumstances indicating double taxation in the present case, the Tribunal rejected the appeal filed by the appellants. The Tribunal emphasized that the decisions of the Madras High Court, which were relied upon by the appellants, did not consider the Supreme Court's judgment, and therefore, the Supreme Court's decision should prevail. This detailed analysis provides a comprehensive overview of the legal judgment, including the arguments presented, legal precedents cited, and the final decision reached by the Appellate Tribunal.
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