Export obligation completed on time cannot be defeated by delayed discharge certificate issuance.

An importer who fulfilled the export obligation within the prescribed period and submitted the requisite papers to the competent authority could not be denied exemption merely because the Export Obligation Discharge Certificate was issued later by DGFT. The delay in issuance was attributable to the public authority, not the importer, and the customs authorities were required to verify the certificate status and consider the subsequently produced EODC. On that basis, the demand of customs duty was held unsustainable and the benefit of the notification was restored.

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Issues: Whether customs duty could be demanded when the importer had fulfilled the export obligation within time but the Export Obligation Discharge Certificate was issued belatedly by the DGFT.

Analysis: The conditions of the exemption scheme required the importer to fulfil the export obligation and submit the requisite documents to the competent authority, while issuance of the Export Obligation Discharge Certificate was a function of the DGFT. The record showed that the export obligation had been discharged within the prescribed period and the relevant papers had been submitted to the DGFT well in time. A delay in issuance of the certificate by the public authority could not be attributed to the importer. The customs authorities and the appellate authority ought to have verified the status of the certificate and taken the subsequently produced EODC into account instead of denying the benefit on the ground of belated issuance.

Conclusion: The demand of customs duty was not sustainable and the importer was entitled to the benefit of the notification.

Final Conclusion: The impugned order was set aside and the appeal was allowed with consequential relief.

Ratio Decidendi: An importer who has fulfilled the export obligation and has timely applied for the requisite discharge certificate cannot be denied exemption benefit or burdened with duty solely because the competent public authority issued the certificate after delay.

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