Exemption declaration filed by packing agent treated as compliance by principal manufacturer, defeating denial of exemption.

Exemption under Notification No. 50/03-CE could not be denied merely because the declaration was filed by the packing agent rather than the principal manufacturer. The declaration requirement was in fact complied with by the packing unit, and even on the department's own case that the unit acted as agent or servant of the principal, the agent's act was treated as the act of the principal for this purpose. The exemption condition was therefore satisfied, and denial of exemption was not justified. As a result, the associated demand and penalties were unsustainable.

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Issues: Whether exemption under Notification No. 50/03-CE could be denied on the ground that the declaration was filed by the packing agent and not by the principal manufacturer.

Analysis: The dispute turned on whether the packing unit acted as an agent of the principal and whether the declaration filed by the agent could be treated as compliance by the principal. The declaration requirement under the exemption notification was undisputedly fulfilled by the packing unit. Even assuming the department's case that the principal was the actual manufacturer and the packing unit acted as an agent or servant, the act of the agent had to be treated as the act of the principal for the purpose of the declaration requirement. On that footing, the exemption condition stood satisfied and denial of exemption was not justified.

Conclusion: The exemption under Notification No. 50/03-CE could not be denied on the ground that the declaration was filed by the agent, and the demand and penalties were unsustainable.

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