( 1 ) THE petitioner has claimed a refund of Rs. 91,908/- in respect of the machineries imported and re-exported in accordance with the provisions of Section 74 of the Customs Act. It is undisputed that the said equipments were imported by the petitioner for exhibition and demonstration and thereafter, re-exported. Under sub-section (1) of Section 74 of the Customs Act, 98% of the duty is refundable. This refund is subject to the conditions mentioned therein. Under sub-section (2) of Section 74, if the goods have been used after importing, then, the refund is permissible as per the notification issued, the notification dated 6-2-1965, as amended by notifications dated 8-11-1969 and 2-5-1970 have been issued in this respect by the respondents. According to this notification, if the imported goods have been re-exported within a period of 6 months, then refund of 85% alone is permissible. It is submitted by the learned Counsel for the petitioner that the provisions of Section 74 (2) are not applicable as the goods have not been put to use and exhibition or demonstration of the goods does not amount to use of goods.

( 2 ) RELIANCE is placed on the judgment given in the case of ABC Ind

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