Export Obligation Discharge Certificate delay justified remand, with customs demand kept pending until DGFT decision.

Customs duty foregone and penalties were challenged where the Export Obligation Discharge Certificate had not yet been issued. The tribunal noted that the appellants had shown efforts and correspondence to secure the certificate, and the delay was not attributable to them. On identical facts, the appropriate course was to await the DGFT authorities' decision on the certificate before confirming the demand. The lower orders were therefore not sustainable in their present form, and the matter was remanded for fresh decision after the DGFT determination.

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Issues: Whether the demand of customs duty foregone could be confirmed and penalties imposed when the Export Obligation Discharge Certificate had not yet been produced, and whether the matter should await the decision of the DGFT authorities.

Analysis: The appellants had shown correspondence and efforts to obtain the Export Obligation Discharge Certificate, and the absence of the certificate was not attributable to any failure on their part. Following the earlier Tribunal view on identical facts, the proper course was to keep the matter pending until the DGFT authorities decided the certificate issue, rather than uphold the demand immediately. The lower orders were therefore not sustainable in their present form.

Conclusion: The issue was decided in favour of the assessee and the matter was remanded to the adjudicating authority to await the DGFT decision and then decide afresh.

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