CHENNAI: The Madras High Court held that custom duty is applicable on Re-export of imported goods, which are exported beyond the period of 12 months.
 
The issue for consideration was that whether the goods re-imported for repair or reconditioning of the goods, when again re-exported beyond the prescribed period of one year including the extension of six months permitted in the Notification, whether the Importer or Assessee was liable to pay duty denying the concession/ exemption of the Notification No.158/95/Cus or not.
 
The division bench of Justice Vineet Kothari and Justice M.S. Ramesh observed the re-import of the goods which had taken place to repair/recondition the goods in question were re-exported beyond the prescribed period of one year including the period of six months of extended period and therefore, the assessee had admitted the breach of the condition of exemption from custody duty under the said Notification No.158/95/Cus.
 
Merely because assessee could claim the duty drawback later on, and it may give rise to a revenue neutral situation, it could not be said that the period of one year prescribed in the said Notification was without any meaning.
 
Whether assessee or importer would actually get such duty drawback or not, was a question which was yet to be determined by the concerned Adjudicating Authority when such a claim of duty drawback was made by assessee.
 
Therefore, that issue could not be prejudged either by the Tribunal or by this Court. On the admitted breach of the Notification No.158/95/Cus, Assessee/ Importer definitely became liable to pay the custom duty in question, denying the exemption under the said Notification in view of the admitted delay beyond the period of 12 months, for the re-export of the same goods.
 
The Court said that CESTAT therefore was justified in denying the said exemption to assessee and also rejecting the rectification application filed by assessee.
 
The court held that where the goods re-imported for repair or reconditioning of the goods, when again re-exported beyond the prescribed period of one year including the extension of six months permitted in the Notification, assessee or importer definitely became liable to pay the custom duty in question in view of the admitted delay beyond the period of 12 months, for the re-export of the same goods.

Source:- dst.news