Jurisdiction over export bond enforcement lies with the bond-accepting authority, not the factory officer, for alleged non-production of export proof.

Where export clearances are made under a bond accepted by a particular authority, enforcement of the bond conditions and recovery action for alleged failure to produce proof of export must be taken by that bond-accepting authority. The factory-level excise officer was limited to intimating the competent authority and forwarding the relevant clearance particulars for further action, and could not itself demand duty or impose penalty on those facts. The demand and penalty were therefore outside the proper scope of jurisdiction, and the matter was remitted for fresh action by the competent authority after verification of the export proof.

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Issues: Whether the proper officer at the factory of clearance could demand duty and impose penalty for alleged non-submission of proof of export, or whether action had to be taken by the authority that had accepted the export bond.

Analysis: The order proceeded on the footing that export clearances were made against a bond executed and accepted before the maritime authority. In that situation, enforcement of the bond conditions and recovery action had to be taken by the bond-accepting authority. The officer at the factory of clearance was only required to intimate the competent authority about the alleged failure to submit proof of export and, where necessary, forward the relevant clearance details for action at that end. The demand of duty and imposition of penalty by the factory-level authority was therefore beyond the proper scope of jurisdiction in the facts of the case.

Conclusion: The demand and penalty were not sustainable as made by the factory-level authority, and the matter had to be sent back for action before the authority that had accepted the bond.

Final Conclusion: The earlier orders were set aside and the matter was remitted for fresh action by the competent bond-accepting authority after verification of the proof of export.

Ratio Decidendi: Where export clearances are made under a bond accepted by a particular authority, enforcement of the bond and recovery of duty for alleged non-production of export proof must be undertaken by that authority, not by a different local excise officer.

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