Commercial invoice exemption dispute under Notification 102/2007 referred to Larger Bench on mandatory compliance with condition 2(b).

A question arose whether a trader clearing imported goods on commercial invoices must strictly comply with condition 2(b) to claim the benefit of Notification No. 102/2007. The Tribunal noted conflicting authorities: one view held that absence of the endorsement was not fatal where the goods were sold on commercial invoices and no duty element was passed on, while another required strict compliance with the notification conditions. Because of this divergence, the issue was referred to a Larger Bench for authoritative determination.

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Issues: Whether, for availing the benefit under Notification No. 102/2007 dated 14.09.2007, compliance with condition 2(b) is mandatory for a trader clearing imported goods on commercial invoices.

Analysis: The Tribunal noticed conflicting decisions on the same question. One line of authority treated the absence of the endorsement as not fatal where the goods were sold on commercial invoices and no duty element was passed on, while another line insisted on strict adherence to the notification conditions. In view of the divergence, the question required resolution by a Larger Bench.

Conclusion: The matter was referred to the Larger Bench for determination of whether condition 2(b) of the notification is mandatory in such cases.

Final Conclusion: The proceeding was disposed of by directing reference of the stated question to a Larger Bench for authoritative resolution.

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