Handicraft certificate evidence controls customs exemption; bare departmental objection cannot defeat notification benefit without contrary proof.

Customs authorities cannot deny the benefit of Notification No. 21/2002-Cus. merely on a bare objection that exported goods are not handicrafts when the Export Promotion Council of Handicrafts has issued a certificate treating them as such. The Tribunal noted that the Revenue did not challenge the certificate before the issuing authority and produced no substantial contrary evidence, while the applicable Board circular required such certificates to be ordinarily accepted unless rejected after discussion with the issuing authority. On those facts, and consistent with earlier similar decisions, the denial of exemption was held unsustainable and the exporter was entitled to the notification benefit.

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Issues: Whether the benefit of Notification No. 21/2002-Cus. could be denied on the ground that the exported goods were not handicrafts despite the certificate issued by the Export Promotion Council of Handicrafts.

Analysis: The appellant had exported the goods under multiple shipping bills and possessed the exemption certificate issued by the Export Promotion Council of Handicrafts. The Revenue did not challenge the certificate before the issuing authority and relied only on its own objection that the goods were not handicrafts. The Board's circular indicated that certificates issued by the Development Commissioner (Handicrafts) or the Export Promotion Council of Handicrafts should normally be accepted and should be rejected only after approval and discussion with the issuing authority. The Tribunal also followed its earlier decision on similar facts, where the absence of expert evidence and the registration with the export promotion council supported acceptance of the handicraft classification.

Conclusion: The denial of the notification benefit was unsustainable and the appellant was entitled to the exemption.

Ratio Decidendi: Where the competent handicraft authority has issued a certificate certifying the goods as handicrafts, the customs authorities cannot deny the exemption benefit merely on a bare objection without challenging the certificate or producing substantial contrary evidence.

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