Customs exemption cannot be denied when required certificates were filed but later misplaced in departmental records.

Exemption under Notification No. 148/94-Cus. could not be denied where the required distribution and utilisation certificates had been submitted to the department but were later not traceable in its records. The earlier remand required verification of the certificates already filed and consideration of delay in submission, not rejection on a fresh ground of non-submission. Since the certificates had been forwarded under acknowledged cover letters, the department had to verify them and could not treat them as never filed merely because they were misplaced internally. The adverse order was therefore unsustainable and the exemption benefit was restored.

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Issues: Whether the appellant was entitled to the benefit of exemption under Notification No. 148/94-Cus. when the required distribution and utilization certificates had already been submitted to the department but were later not traceable in departmental records.

Analysis: The prior remand had directed verification of the certificates already submitted and condonation of delay in their submission. The records showed that the appellant had forwarded the certificates under cover of letters acknowledged by the department. The rejection on the fresh ground of non-submission was inconsistent with the earlier direction, since the issue was delayed submission and not absence of certificates. If the certificates were misplaced by the department, the appellant could not be denied the exemption on that basis.

Conclusion: The appellant was entitled to the exemption benefit, and the adverse order was unsustainable.

Final Conclusion: The appeal succeeded and the exemption was restored after holding that the department was required to verify the certificates already submitted rather than treat them as never filed.

Ratio Decidendi: Where the assessee has duly submitted the required certificates and the dispute is only about delayed submission, the exemption cannot be denied on the later plea of non-submission if the certificates were received by the department and merely not traceable in its records.

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