Concessional import compliance held procedural, allowing post-import registration and application before use, with notification benefit and refund upheld.

Registration under Rule 3 and application under Rule 4 of the concessional import scheme were treated as procedural requirements intended to regulate the concession and ensure end-use for the declared purpose. The Tribunal held that, on a plain reading of the rules, these steps could be completed after import but before use of the goods, and were not mandatory pre-import conditions. The importer was therefore entitled to the benefit of Notification No. 21/2003-Cus. and refund, and the Revenue's challenge was rejected.

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Issues: Whether the requirements of registration and application under the concessional import rules were merely procedural so as to permit the benefit of Notification No. 21/2003-Cus. and refund despite post-import compliance.

Analysis: The imported goods were cleared before registration under Rule 3 and before the application under Rule 4, but the Tribunal held that these requirements were intended to regulate the concession and ensure end-use of the imported goods for the declared purpose. On a plain reading of the rules, nothing prevented the necessary steps from being completed after import but before use of the goods. The rules were therefore treated as procedural rather than conditions that had to be fulfilled only prior to importation.

Conclusion: The assessee was entitled to the benefit of the notification and refund, and the Revenue's challenge was rejected.

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