Duty-free export conditions satisfied after valid extension and proof of export, so the excise demand could not stand.

Duty-free export under the notification remained available where exports were made within six months or within a validly extended period allowed by the Collector of Central Excise. The record showed that such extension had in fact been granted, and proof of export had been furnished in all the cases covered by the proceeding. Once the extended statutory condition was satisfied, the demand for excise duty could not be sustained, and the Revenue's appeal failed.

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Issues: Whether duty of excise could be demanded for failure to furnish proof of export within six months, where the export period stood extended by the Collector of Central Excise.

Analysis: The notification permitting export without payment of duty required export within six months from clearance, or within such extended period as the Collector of Central Excise might allow. The record showed that extension had in fact been granted. It was also noted that proof of export had been produced in all the cases covered by the proceeding. On these facts, the demand could not survive once the statutory condition as extended had been satisfied.

Conclusion: The demand of excise duty was not sustainable and the Revenue's appeal failed.

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