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2019 (12) TMI 735 - AT - CustomsBenefit of exemption - re-import of goods - Customs duty goods which are reimported within three years of their export for “repair” or “reconditioning” - benefit of N/N. 52/2003-Cus, dated 31.03.2003 - 100% EOU - the goods in the present case were reimported for the purpose of repacking - whether the activity of repacking of pharmaceuticals can be called as repair or reconditioning? HELD THAT:- Reconditioning also is more or less synonymous with the word ‘repair’ - Pharmaceutical products are covered at Sl.No. 31 of the Third Schedule to the Central Excise Tariff Act. Since the product in question is a pharmaceutical product, we also looked into the chapter notes to Chapter 30 of Central Excise Tariff under which these products fall. Chapter Note 6 clarifies that while dealing the pharmaceutical products, re-labelling or re-labelling of the containers intended for consumers or repacking sought from bulk packs to retail boxes or for adopting of any other treatment to render the product marketable to the consumer, shall amount to ‘manufacture’. Section 2(f) of the Central Excise Act, 1944 as well as Chapter Note 6 to Chapter 30 of Central Excise Tariff make it abundantly clear that repacking of pharmaceuticals amounts to manufacture. Any activity which gets squarely covered under the definition of ‘manufacture’ cannot be called as “repair or reconditioning” of the products. Sl. No. 14 of Annexure-I to the impugned notification exempts the products/goods imported within 3 years from the date of exportation only under the condition that the goods are reimported either for repair or for reconditioning. Hence when the goods are reimported for an activity which amounts to manufacture, such re-importation will not fall under the impugned notification. Therefore, the exemption benefit of the notification cannot be extended to the appellant. The appellant also relied on CBEC’s circular No. 127/95, dated 14.12.1995 - there is nothing as such in this circular which extends the benefit of the exemption notification No. 52/2003 for re-importation of goods when those are re-imported within 3 years of exportation for an activity which amounts to manufacture. The appellant is not entitled to the benefit of exemption notification No.52/2003-Cus. Dated 31.03.2003 - Appeal dismissed - decided against appellant.
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