Duty demand on exported excisable goods fails where SSI exporters within exemption limit are not required to follow ARE-1 or bond formalities.

Duty demand on exported excisable goods was not sustainable where the exporter was an SSI unit exporting within the exemption limit and the export was supported by invoices, packing list, shipping bills, bill of lading and a bank certificate of export realisation. The documentary evidence of export was not disputed, and the Tribunal accepted the view that such SSI exporters were not required to execute a LUT/Bond or follow the ARE-1 procedure. Relying on prior Tribunal precedent and the Board circular, the demand was set aside.

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Issues: Whether duty demand on exported excisable goods was sustainable when the exporter, being an SSI unit within the exemption limit, had not executed a LUT/Bond or followed the ARE-1 procedure.

Analysis: The export documents, including invoices, packing list, shipping bills, bill of lading, and bank certificate of export realization, showed that the goods had been exported. The documentary evidence was not disputed by the authorities below. The Tribunal noted that SSI units exporting goods within the exemption limit were not required to follow the ARE-1 procedure or execute bond formalities, and relied on the earlier Tribunal view and the Board circular supporting that position.

Conclusion: The duty demand on the exported goods was not sustainable and was set aside in favour of the assessee.

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