Export procedure lapse and proof of actual export led to remand for fresh verification of merchant-exporter evidence.

Export duty demand was examined in the context of non-compliance with the prescribed export procedure for small scale units. The text notes that export benefit should not be denied solely for a procedural lapse, but where the stated procedure was not followed, the assessee had to produce other evidence proving actual export through merchant exporters. As the crucial question of actual export remained unresolved and the assessee sought an opportunity to file supporting evidence, the orders below were set aside and the matter was remanded for fresh consideration after a reasonable opportunity of verification.

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Issues: Whether the demand of duty on export clearances could be sustained for non-compliance with the prescribed export procedure, and whether the matter should be remanded for production and verification of evidence of actual export.

Analysis: A simplified procedure for export was available for small scale units under the Board's circular. The dispute was not concluded on merits of duty liability because the crucial question remained whether the goods had in fact been exported through merchant exporters. The order notes that export benefit should not be denied merely for a procedural lapse, but where the prescribed procedure was not followed, the assessee had to produce other evidence establishing export. As the assessee sought an opportunity to place such evidence on record, the orders below were set aside and the matter was sent back for fresh consideration after granting reasonable opportunity.

Conclusion: The demand was not finally upheld, and the matter was remanded to verify whether the goods cleared by the assessee were actually exported through merchant exporters.

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