Export under bond for exempted goods upheld; differential treatment from non-excisable goods rejected.

Exempted goods were held eligible for clearance for export under bond, because the Tribunal found no valid basis to treat them differently from non-excisable goods cleared in bond. It rejected the departmental view that the bond facility was confined only to excisable and non-excisable goods manufactured in bond, and followed the cited High Court ruling supporting removal of exempted goods under bond. The appeal was allowed.

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Issues: Whether exempted goods could be cleared for export under bond.

Analysis: The Tribunal noted that the departmental view proceeded on the basis that export under bond was permissible only for excisable and non-excisable goods manufactured in bond, and that exempted goods were outside that facility. It held that such differential treatment between exempted goods and non-excisable goods was not correct. The Tribunal also followed the cited High Court decision which had taken the view that exempted goods could be removed under bond.

Conclusion: Exempted goods were held to be eligible for clearance for export under bond, and the appeal was allowed.

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