Procedural delay cannot defeat concessional duty where clearances stay within authorised limits and scheme conditions are otherwise met.

A concessional duty benefit under Notification No. 2/95-CE was considered available for DTA clearances where the clearances remained within the quantities authorised by the Development Commissioner and within the applicable policy limits. Delay or absence of prior permission was treated as a procedural lapse that did not defeat substantive entitlement under the scheme. For wool waste and scrap, clearances within the 5% limit under the EXIM policy did not require prior approval. The alleged short payment also failed because the duty paid under the notification was higher than the duty otherwise leviable, so the duty demand and penalty were not sustainable.

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Issues: Whether the assessee was entitled to the concessional rate of duty under Notification No. 2/95-CE for DTA clearances despite absence or delay of prior permission from the Development Commissioner, and whether the duty demand and penalty could be sustained.

Analysis: The clearances were held to be within the quantities authorised by the Development Commissioner and within the permitted limits for the relevant products. The absence of prior authorisation for some periods was treated as a procedural delay, not as a denial of the substantive entitlement under the notification. For wool waste and scrap, the clearances were found to be within the 5% limit contemplated by the EXIM policy framework, and no prior approval was required. It was also noted that even on the alternative assumption of absence of prior permission, the duty paid under the notification was higher than the duty leviable under the main charging provision, so the allegation of short payment did not survive.

Conclusion: The concessional benefit was held admissible and the duty demand and penalty were not sustainable.

Ratio Decidendi: A substantive exemption or concession cannot be denied for a mere procedural delay where the clearances are otherwise within the authorised entitlement and the applicable scheme conditions are satisfied.

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