End use certificate condition governs customs exemption, and failure to file it on time sustains duty demand and remand.

Concessional customs duty under Notification No. 22/2002-Cus depended on use of the imported goods for the specified purpose and timely production of the end use certificate before Customs, including any duly extended period. As the certificate was not produced within the stipulated time and no extension was sought, the exemption condition was not satisfied and duty on the shortage quantity remained payable. The remand for fresh quantification was also justified because the parties disputed the applicable rate and the correct computation had to be determined by the proper authority. Relief was therefore unavailable on merits, while the remand was upheld.

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Issues: Whether the appellant was entitled to concessional customs duty under Notification No. 22/2002-Cus dated 01.03.2002 despite not producing the end use certificate within the stipulated time, and whether the remand for correct quantification of duty was justified.

Analysis: The exemption under the notification was conditional upon use of the imported goods for the specified purpose and production of the end use certificate before the Customs authorities within the prescribed time or any extended period. The records showed that the end use certificate was not produced within the stipulated period and no extension had been sought. In these circumstances, the condition attached to the exemption was not fulfilled, and the duty demand on the shortage quantity was sustainable. The Commissioner (Appeals) also correctly remanded the matter for proper quantification because the department and the importer had taken different views on the applicable rate and the correct computation had to be made by the proper authority.

Conclusion: The appellant was not entitled to relief on merits, and the remand for quantification of duty was upheld.

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