Form-H as proof of export upheld for exempted-unit clearances made through a merchant-exporter.

Form-H issued by a merchant-exporter was treated as acceptable proof of export for goods cleared by an exempted unit, where the clearance fell within the Board's circular governing exports through merchant-exporters. The departmental objection that the export facility was unavailable on the facts was rejected because the evidentiary record supported the export claim and the nature of the clearance was correctly appreciated. On that basis, the denial of duty liability on the clearance was not sustained, and the Revenue's challenge failed.

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Issues: Whether Form-H issued by a merchant-exporter could be accepted as proof of export for goods cleared by an exempted unit, and whether the denial of duty liability on such clearance was sustainable.

Analysis: The goods were cleared by the exempted unit to a merchant-exporter, and the record showed issuance of Form-H as contemplated by the Board's circular governing exports by exempted units through merchant-exporters. The departmental objection that the facility was unavailable on the facts was not accepted, as the Commissioner (Appeals) had correctly appreciated the nature of the clearance and the evidentiary value of Form-H in support of export.

Conclusion: The claim that the clearance was supported by proof of export was upheld, and the Revenue's challenge failed.

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