Export obligation certificate under EPCG scheme prevails over factory-location objection for customs exemption.

Under Notification No. 110/95-Cus, exemption could not be denied merely because exports were made from a different factory, where the licensing authority's certificate confirmed full fulfilment of export obligation under the EPCG licence. The analysis states that the relevant notification required certification by the authority as to the extent of obligation met, and the DGFT certificate advising release of the bank guarantee or LUT was treated as determinative. Revenue could not ignore that certificate unless it obtained a specific contrary clarification from the same authority excluding those exports for EPCG purposes. The appeal succeeded and consequential relief followed.

---

---

Issues: Whether benefit under Notification No. 110/95-Cus could be denied on the ground that exports were made from another factory and not from the factory where the imported capital goods were installed, notwithstanding the certificate issued by the licensing authority showing fulfilment of export obligation.

Analysis: The notification required the importer to produce a certificate from the licensing authority indicating the extent of export obligation fulfilled. The appellant produced a certificate from the office of the Director General of Foreign Trade stating that the entire export obligation under the EPCG licence had been met and advising release of the bank guarantee or LUT. In view of that certification, the place from which the exports were made did not justify denial of the exemption. The Revenue could not disregard the licensing authority's certificate unless it obtained a specific clarification that such exports were excluded for EPCG purposes.

Conclusion: The benefit of the notification could not be denied, and the issue was decided in favour of the appellant.

Final Conclusion: The appeal succeeded and the appellant was held entitled to the consequential relief flowing from acceptance of fulfilment of export obligation under the EPCG scheme.

Ratio Decidendi: Where the applicable exemption notification makes fulfilment of export obligation dependent on certification by the licensing authority, a valid certificate issued by that authority is determinative unless specifically displaced by a contrary clarification from the same authority.

---