By TIOL News Service

NEW DELHI, SEPT 11, 2017: THE matter concerns notification No. 158/95-Cus dated 14.11.1995.

In this case, the appellant did not re-export the said consignment within six months, but within 9 months. As appellant did not seek prior permission within six months for extension of time, therefore, the bank guarantee given at the time of re-import has been forfeited by the Commissioner.

The appellant is before the CESTAT and acknowledges that it is second round of litigation.

Inter alia, it is their submission that in the notification, it is not mentioned that extension of time is required to be taken prior to expiry of initial six months of reimport. Therefore, since the appellant has complied with the condition of filing application seeking extension of time, they had substantially complied with the condition of notification and, therefore, the impugned order is to be set aside.

The AR disagreed.

The Bench observed –

"…On going through the condition mentioned in the notification, nowhere it is mentioned that the appellant is required to seek extension of time within six months from the date of re-importation. In fact, the fact is not in dispute that re-imported goods are required to be re-exported within three years of re-import as per condition (i) of the said notification. When the main condition of notification has not been violated by the appellant, therefore the benefit of notification cannot be denied merely on the ground that appellant did not seek extension of time within 6 months of re-import…."

Concluding that the appellant had complied with the condition of notification No. 158/95-Cus and, therefore, the bank guarantee executed at the time of re-importation is not required to be forfeited,the impugned order was set aside and appeal was allowed with consequential relief.

(In) Accuracy in passing:

The conditions in the notification –

1. Such re importation takes place within 3 years from the date of exportation;

2. Goods are re-exported within six months of the date of re-importation or such extended period not exceeding a further period of six months as the Commissioner of Customs may allow;

(See 2017-TIOL-3293-CESTAT-DEL)