Conditional exemption notifications apply only when prescribed conditions are met; an assessee may opt to pay duty instead.

A conditional exemption notification operates only when its prescribed conditions are satisfied; if those conditions cannot be met, the assessee is not compelled to claim the exemption. The document explains that an assessee may choose not to avail a conditional notification and instead clear the goods on payment of duty. The exemption in question was dependent on fulfilment of specified requirements, so the right to duty-free clearance arose only upon compliance with those conditions. The contrary view was stated to be unsustainable.

---

---

Issues: Whether the assessee was bound to claim the benefit of a conditional exemption notification or had the option to clear the goods on payment of duty.

Analysis: An exemption notification may be unconditional or conditional. In the case of a conditional notification, the exemption is available only if the prescribed conditions are satisfied. Where the assessee considers that the conditions cannot be fulfilled, it is not compelled to claim the exemption. The notification in question required satisfaction of specified conditions before duty exemption could be availed.

Conclusion: The assessee had a right not to avail the conditional exemption notification, and the goods were liable to be cleared on payment of duty. The contrary view was unsustainable.

---