CT-2 quantity limits govern duty-free clearances; excess clearances remain dutiable under the authorised concession.

Duty-free clearances under a CT-2 certificate remained conditional on the authorised quantity limit, and goods cleared beyond that limit were liable to duty. A party that accepts and benefits from a concession subject to restrictions cannot later challenge the restriction while retaining the benefit. The demand was confined to the excess quantity alone, and the duty demand on clearances beyond the CT-2 authorisation was upheld.

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Issues: Whether duty was leviable on clearances made beyond the quantity permitted under the CT-2 certificate issued for availing exemption under the relevant notifications.

Analysis: The concession to receive goods without payment of duty was granted subject to a specific quantity restriction in the CT-2 certificate. The consignee availed the benefit of that conditional permission and the appellant cleared goods beyond the authorised quantity without payment of duty. A party cannot accept a concession subject to conditions and thereafter dispute those very conditions as unreasonable or without jurisdiction while continuing to benefit from the concession. The demand was confined only to the quantity cleared in excess of the quantity allowed under the certificate.

Conclusion: The duty demand on excess clearances was justified and the challenge to the quantity restriction failed.

Final Conclusion: The appeal failed, and the demand confirmed on clearances made beyond the CT-2 authorisation was sustained.

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