Exemption under customs notification cannot be denied for late certificate production if the certificate covers the imported goods.

Benefit of exemption and refund under Notification No. 70/81-Cus. could not be denied merely because the not manufactured in India certificate was applied for or produced after arrival or clearance of the goods. The notification did not fix any mandatory time for applying for the certificate; it required production at clearance or within the period allowed by the proper officer. Belated production alone was therefore insufficient to defeat exemption. The matter was remitted to verify whether the certificate actually covered the goods in dispute, and refund was to follow if that factual requirement was satisfied.

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Issues: Whether the benefit of exemption and refund under Notification No. 70/81-Cus. dated 26-3-1981 could be denied merely because the not manufactured in India certificate was applied for or produced after arrival or clearance of the goods.

Analysis: The notification did not prescribe any fixed time by which the not manufactured in India certificate had to be applied for. It required production of the certificate at the time of clearance of the goods or within such period as the proper officer may allow. The certificate produced after clearance could not, by itself, disentitle the importer from the exemption benefit. The only further question was whether the certificate in fact covered the goods in dispute.

Conclusion: The objection based only on belated production of the certificate was rejected. The matter was sent back for verification of whether the certificate covered the goods, and refund was to follow if that requirement was satisfied.

Final Conclusion: The appeal succeeded to the extent that the denial of exemption on the ground of timing alone was set aside, and the claim was left for fresh examination on the factual coverage of the certificate.

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