Duty-free import exemption cannot be denied solely for pending export obligation certificate when DGFT delay is outside importer's control.

Duty-free import benefit under Notification No. 55/2003-Cus. could not be denied merely because the export obligation discharge certificate had not yet been issued by the DGFT. Where the importer had applied for the certificate and pursued the matter with the authorities, non-issuance of the certificate was outside its control, and exemption could not be refused solely on that administrative delay. The denial of exemption and corresponding duty demand were therefore not sustainable on the existing record, and the matter required reconsideration after the DGFT's decision.

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Issues: Whether the benefit of duty-free imports under Notification No. 55/2003-Cus. dated 01-04-2003 could be denied and duty confirmed merely because the export obligation discharge certificate had not yet been issued by the DGFT authorities.

Analysis: The appellant had applied for the discharge certificate and had also pursued the matter with the DGFT authorities. The certificate was not within the appellant's control, and the denial of exemption solely for non-issuance of the certificate by the authority would unfairly penalise the assessee for administrative inaction. The matter therefore required reconsideration after awaiting the decision of the DGFT authorities.

Conclusion: The denial of the exemption and the consequent confirmation of duty could not be sustained on the existing record, and the matter was required to be reconsidered after the DGFT's decision.

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