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2019 (5) TMI 721 - AT - CustomsDuty Drawback - re-export of goods - rejection on the ground that the duty on the imported goods along with interest has not been paid - HELD THAT:- The appellant has already made payment of redemption fine and penalty and is requesting for re-export of the goods. Even if the Appellant is made to make payment of duty on such imported goods but he is eligible for drawback of 98% of the duty payable on the importation of the goods in terms of Section 74 of the Customs Act. The facts of importation of goods due to awarding of contract by ONGC and cancellation of same which led to seizure of goods is not in dispute. It is not a deliberate intention case of non payment of duty on imported goods and the Appellant after payment of redemption fine and penalty has option either to pay duty if he wants to keep the goods in India or to re-export the same - In case of re-export for which he is eligible, the net effect of duty payable by him would be 2% i.e. difference between the duty payable and drawback amount under Section 74 of the Customs Act. It is also clear that he is eligible for 98% duty drawback of the duty paid by them. The Hon’ble Bombay High Court in case of CIPLA LIMITED VERSUS UNION OF INDIA [1995 (6) TMI 23 - HIGH COURT OF JUDICATURE AT BOMBAY] has allowed the assessee to re-export the goods on payment of differential duty of 2% after adjusting the drawback of 98% of duty admissible to them in terms of Section 74 of the Customs Act, 1962. The impugned order is not sustainable and the appellants are allowed to re-export the impugned imported goods on payment of 2% differential duty, which shall be adjusted against the pre-deposit of 7.5% which was made by them as mandatory pre-deposit while filing the appeal before the Tribunal against the OIO dated 23.11.2016 - Appeal allowed - decided in favor of appellant.
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