Retrospective import conditions cannot be added through a later circular to deny customs exemption benefits.

Notification No. 11/97-Cus. was held applicable to imports made before Circular No. 74/98-Cus., because the later circular could not be applied retrospectively to impose an actual user or end-use bond condition. Following an earlier coordinate bench view on the same notification, the exemption could not be denied by reading additional conditions into the notification for pre-circular imports. On identical facts, the earlier reasoning was followed and the exemption was allowed to stand.

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Issues: Whether the benefit of Notification No. 11/97-Cus. could be denied by applying the later circular and imposing an actual user or end-use condition retrospectively on the imported goods.

Analysis: The appeals involved imports made prior to the issuance of Circular No. 74/98-Cus., which had been interpreted in an earlier coordinate bench decision on the same notification. That decision held that the circular could operate only prospectively and that, for imports made before its issuance, an actual user condition or end-use bond condition could not be added to deny the exemption. The present case was found to be identical on facts, and the earlier reasoning was followed.

Conclusion: The benefit of the notification could not be denied on the basis of the later circular, and the appellants were entitled to the exemption.

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