1999 (1) TMI 193

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..... as re-imported, for which the appellant filed a bill of entry dated 13-3-1995. Such export for repair and re-import of the machine was in accordance with the provisions of Para 31 of the Export and Import Policy 1992-97. On re-import of the repaired machine, the appellants claimed exemption under Notification No. 204/76-Cus., dated 2-8-1976 and paid basic Customs duty and additional Customs duty at concessional value of the machine in question computed in accordance with the items of the said notification. The said Notification No. 204/76 exempted the re-imported articles from so much of the duty of Customs as was in excess of the duty of Customs leviable if the value of such re-imported goods were made up of the fair cost of repairs carrie .....

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..... nd the same was paid by them on the repaired re-imported machine. It was only for the purposes of arriving at the assessable value of the machine for the purpose of Customs duty that the value was taken in terms of Notification No. 204/76. He submits that this notification is an exemption notification granting relief of Customs duty dependent upon the assessable value of the goods which has been lowered down in view of the fact that re-imported article has once paid the duties earlier at the time of original importation. This does not mean that the duty has been paid on the fair charges or on the repaired charges or on the insurance only. Accordingly he submits that the reasoning adopted by the authorities below is erroneous. As they have p .....

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..... ds were made up of the fair cost of repairs carried out, insurance and freight charges both ways. As such there is no doubt that countervailing duty is payable on the re-import of the articles. It is only the assessable value which has been brought down to the extent of the fair cost, insurance and freight charges i.e. instead of charging the countervailing duty on the complete value of the goods by treating the same as assessable value, a deemed assessable value has been provided consisting of the three expenses as mentioned above, in terms of the said notification. The very fact that exemption has been granted in terms of the value of the article vide the said notification shows that countervailing duty is payable on the articles. As such .....

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