Customs exemption cannot be denied by adding an end-use certificate condition not stated in the notification.

Diammonium phosphate imported for use as manure was covered by the customs exemption entry, and no separate end-use certificate requirement appeared in the notification. The importer had declared the intended use at import, and there was no evidence of diversion to another purpose, so insisting on a formally acceptable certificate added a condition not found in the exemption. The denial of benefit on that basis was unsustainable, and the exemption was restored.

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Issues: Whether Diammonium Phosphate imported for use as manure was entitled to exemption under the customs notification without production of an end-use certificate and whether the authorities could insist on a condition not expressly prescribed in the notification.

Analysis: Serial No. 50 of the notification granted nil duty to Diammonium Phosphate for use as manure or for production of complex fertilizers, and clause (6) did not prescribe any separate condition against that entry. The importer had declared the end use at the time of import and there was no evidence that the goods were used for any other purpose. The insistence on an end-use certificate, and rejection of the certificate produced on minor discrepancies, introduced a condition not found in the notification. Such an extraneous requirement could not be read into the exemption entry.

Conclusion: The importer was entitled to the exemption, and denial of the benefit on the ground of non-production of a formally acceptable end-use certificate was unsustainable.

Final Conclusion: The appellate order denying exemption was set aside and the adjudication order granting relief was restored.

Ratio Decidendi: A customs exemption notification must be applied as written, and an authority cannot impose an additional end-use certification requirement unless it is expressly provided in the notification.

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