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2014 (3) TMI 95 - DELHI HIGH COURTDuty drawback - verification of identity between import goods and export goods - Import of sewing needles for the purpose of re-export - petitioner contends that the phraseology of Section 74 admits of only one interpretation and addresses it with the language adopted in Section 75. It is argued that Section 75 allows drawback in respect of goods so long as they are identifiable in all material particulars with the imported goods. - Held that:- In Phoenix (2010 (9) TMI 281 - BOMBAY HIGH COURT), interestingly, the view of the Central Government, (which cannot, of course, be treated as a precedent) itself appears to have been that if the so-called “process” is a mere change of packaging, and fairly disclosed by the assessee/re-exporter, Section 74 would apply and not Section 75. This interpretation of the Central Government may be seen in Torrent (1999 (11) TMI 95 - GOVERNMENT OF INDIA). What the petitioner appears to have done is a matter which cannot be disputed by the respondents since both at the stage of importation and reexport, the goods were verified – i.e. the needles were subject to re-packaging and re-exported. As to the applicability of the ABC (1991 (8) TMI 107 - HIGH COURT OF DELHI AT NEW DELHI), there cannot be any dispute since re-packing cannot, by any stretch of imagination, be called an “operation” or “process” on the goods. The quantity and identity of the goods remained unchanged. In these circumstances, we are of the opinion that the view of the Central Government cannot be sustained and is set-aside. - Decided in favor of assessee.
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