Customs exemption re-categorization cannot be sought after certificate withdrawal and inordinate delay, where the withdrawal was not challenged.

A request to change the category of exemption under a customs notification could not be entertained after the exemption certificates had already been withdrawn for breach of the attached conditions, particularly where the challenge to that withdrawal was not pursued. The later attempt to seek re-categorization under a different paragraph was treated as belated and an afterthought because it was made only after a substantial delay, when any such change should have been sought before withdrawal. The rejection of re-categorization was therefore sustained.

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Issues: Whether the hospital could seek re-categorization under para 1 of Notification No. 64/88-Cus. after the Customs Duty Exemption Certificates had been withdrawn for non-compliance with para 2, and after a substantial delay.

Analysis: The entitlement claimed under the notification had already stood withdrawn when the Certificates were cancelled for breach of the conditions attached to para 2. The challenge to that cancellation was not pursued, so the later request for shifting to para 1 could not survive independently. A change in categorization could have been considered only before the withdrawal of the Certificates, and a representation made after three to four years was treated as belated and an afterthought. The Court therefore found no basis to disturb the rejection of the request for re-categorization.

Conclusion: The request for re-categorization was not maintainable and was rightly rejected, against the assessee.

Final Conclusion: The orders rejecting the change of categorization were sustained, and the appeals were dismissed.

Ratio Decidendi: A request to change the category of exemption under a notification cannot be entertained after the relevant exemption certificate has already been withdrawn for breach of conditions and the challenge to that withdrawal has been abandoned, especially when the request is made after an inordinate delay.

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