Central Excise formalities on replacement of exported goods

Once u export the goods under bond you are claiming exemption from Custom duty under Notification 96/1996. Once such goods are rejected and return to India you cannot avail the benefit of 158/1995, Hence i think u may have to pay custom duty on the same.

Case Law Reference:  Indian Rayon & Industries Ltd 2008 (229) ELT 3 (SC)

Please refer the notifications and the other posts for a determinative opinion