End-use certificate delay did not justify denial of customs exemption; disputed quantity demand was remanded for factual verification.

Notification No. 21/2002-Cus could not be denied merely because end-use certificates were produced after the stipulated six-month period, where the certificates were ultimately furnished and the notification condition was otherwise met. The demand based on the claim that some certificates did not cover the entire imported quantity depended on factual verification not examined earlier, and the assessee was entitled to meet that basis of demand. The disputed demand was therefore set aside and the matter remanded to the original authority for verification.

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Issues: Whether the benefit of Notification No. 21/2002-Cus dated 01.03.2002 could be denied for non-production of end-use certificates within the stipulated period, and whether the demand relating to the disputed quantity required verification by the original authority.

Analysis: The condition in the notification required production of an end-use certificate from the proper officer, and the appellate authority accepted that the notification benefit could not be denied merely because the certificates were not produced within six months where the certificates were ultimately produced. However, the confirmation of duty on the basis that some certificates did not cover the entire imported quantity turned on a factual verification that had not been examined at the earlier stage. Since the disputed factual aspect needed scrutiny and the assessee had to be given an opportunity to meet that basis of demand, the matter was not fit for final determination at that stage.

Conclusion: The denial of the notification benefit on the ground of delayed production of end-use certificates was not sustained, but the demand relating to the disputed quantity was set aside and remanded for verification.

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