Strict compliance with exemption conditions controls customs relief where re-export deadlines and identity proof are not satisfied.

Benefit under Notification No. 158/95-Cus. was available only on strict compliance with its conditions, including re-export of re-imported goods within six months, extendable by a further six months, and satisfaction of the Assistant Commissioner on identity of the goods. Where the goods were not re-exported within time, no extension was sought, and identity was not established to the customs authority's satisfaction, the exemption could not be retained. A claimant could not later switch to a different notification to bypass conditions already accepted. On these facts, the duty demand was sustainable and the appeal failed on merits.

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Issues: Whether the appellant was entitled to retain the benefit of Notification No. 158/95-Cus. despite failure to re-export the re-imported goods within the stipulated period and failure to establish the identity of the goods to the satisfaction of the Customs authority.

Analysis: The goods were re-imported under Notification No. 158/95-Cus. on execution of bond and bank guarantee. The notification required re-export within six months of re-importation, extendable only by a further period not exceeding six months, and also required satisfaction of the Assistant Commissioner regarding the identity of the goods. The record showed no re-export within time and no request for extension. The appellant could not later shift to a different notification to avoid the conditions already accepted, and the identity requirement was also not satisfied.

Conclusion: The conditions of the exemption notification were not complied with, and the duty demand was sustainable.

Final Conclusion: The appeal failed on merits, and the orders of the lower authorities were sustained.

Ratio Decidendi: A party claiming the benefit of an exemption notification must strictly comply with its conditions, and non-fulfilment of time-bound re-export and identity requirements renders the exemption unavailable.

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