ORDER
C. Satapathy, Member (T)
1. Heard both sides. The appellants were permitted re-importation of 317 Kgs. of Dihydralazine Sulphate without payment of customs duty on provisional assessment subject to re-export within six months or such extended period. They submitted a Bank Guarantee of Rs. 2,69,181/- which was valid till 20-11-1995 and further extended till 22-2-1996. Since they failed to submit evidence regarding re-export, the lower authorities ordered the appellants to pay customs duty of Rs. 2,99,405/- and directed the bank to remit the amount of Rs. 2,69,181/- in terms of the Bank Guarantee.
2. The appellants claimed that the impugned goods were re-processed after rejection by the purchaser in Germany and was finally re-exported on 5-6-1996. They claimed that while their application for re-exporting the goods was pending, the Assistant Commissioner passed the impugned order, ordering payment of duty and encashing Bank Guarantee.
3. The Commissioner (Appeals) has rejected the appeal filed by the appellants after noting that the appellants had not requested for any extension for re-exporting the goods, though the Bank Guarantee was renewed for a further period. As such, he has held that the appellants have not fulfilled conditions of the bond and the guarantee by not re-exporting the goods within six months and not obtaining any extension.
4. After going through the case records, we find that since the conditions of the bond under which duty free clearance on re-importation was allowed was not fulfilled in time, the lower authorities have rightly demanded the duty in terms of the bond and Bank Guarantee on the re-imported goods. However, since the re-imported goods on which duty has been collected, have been re-exported subsequently, the matter is remanded to the original authority for considering sanction of draw back to the appellants in respect of duty recovered on the re-imported goods.
5. Appeal is allowed by way of remand.
