Delayed production of exemption certificate does not defeat customs benefit when public authority approval is later obtained.

An exemption under Notification No. 23/98-Cus. cannot be denied merely because the prescribed Ministry certificate was not available at import and clearance, where the importer had applied in advance, sought provisional assessment, and later produced the certificate once issued by the competent public authority. The decisive consideration was that issuance of the certificate was beyond the importer's exclusive control, and the substantive condition of approval for the project and use of the goods for that project was ultimately satisfied. Delayed production of the certificate did not defeat entitlement to the exemption, and denial of benefit on that ground was unsustainable.

---

---

Issues: Whether benefit of Notification No. 23/98-Cus. could be denied merely because the prescribed certificate from the Ministry of Environment and Forest was not available at the time of import and clearance, when the importer had applied for it in advance and obtained it subsequently.

Analysis: The condition in the notification required production of a certificate from the Ministry confirming approval of the project and the use of goods for that project. The importer had entered into the contract, applied for the certificate before import, and requested provisional assessment because the certificate had not yet been issued. The certificate was ultimately issued later by the competent Ministry, and its correctness was not disputed. The controlling consideration was that issuance of the certificate depended on an act of a public authority and was not within the importer's exclusive control. In such circumstances, non-availability of the certificate at the time of clearance did not defeat the exemption where the required certificate was later produced and the substantive requirement stood satisfied.

Conclusion: The exemption under Notification No. 23/98-Cus. was rightly allowed, and the denial of benefit on the ground of delayed production of the certificate was unsustainable.

Ratio Decidendi: Where fulfillment of an exemption condition depends upon the act of a public authority and the importer has complied within his control, delayed production of the required certificate does not by itself defeat entitlement to the exemption.

---