EOUs can re-import goods rejected by buyer for repairs, re-export: Expert

According to Para 2.46.II (a) of FTP, goods imported against payment in freely convertible currency would be permitted for export only against payment in freely convertible currency

We are a 100 per cent EOU in Bhiwadi, exporting engine parts to foreign countries without any duty. We used to import under duty exemption through procurement certificates from our excise department. But now, one issue has come up regarding re-import of rejected goods for repairing and re-export. Our jurisdictional officer says that this cannot be imported duty-free because it does not appear as raw material in our Letter of Permission (LOP). What is the correct position?

Under notification 52/2003-Cus dated March 31, 2003, all goods mentioned at Annexure-1 to that notification can be imported by an EOU without duty payment.