Exemption notification benefit survives delayed clearance where goods were manufactured and exemption claimed before withdrawal.

Goods manufactured while an exemption notification was still in force remained eligible for that benefit even though clearance occurred after the notification was withdrawn, where the delay in removal resulted from insistence on a fresh classification list. The operative consideration was that the exemption was sought before rescission and the denial rested only on the date of clearance and the procedural requirement. In these circumstances, the petitioners were not to be deprived of the exemption on a purely formal ground, and the revision application was allowed with consequential relief.

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Issues: Whether the petitioners were entitled to the benefit of the exemption notification in respect of goods manufactured before withdrawal of the exemption but cleared afterwards, especially where clearance was delayed because a fresh classification list was insisted upon.

Analysis: The petitioners had manufactured the goods while the exemption was still in force and had sought to avail of the notification before its withdrawal. The denial of benefit rested on the date of clearance alone and on the requirement of filing a fresh classification list. The order accepted that, in the circumstances, the petitioners should not be deprived of the exemption merely because the procedural formality was insisted upon and the goods remained uncleared until after rescission of the notification.

Conclusion: The petitioners were entitled to the exemption benefit and the revision application was allowed with consequential relief.

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