Exemption for warehoused goods cannot be lost when customs delay prevents timely clearance before rescission.

Warehoused goods imported while an exemption notification was in force remained eligible for that exemption despite later rescission, because customs authorities delayed investigation and adjudication without reasonable promptitude. The delay kept the matter pending, increased warehouse rent, and allowed the notification to be rescinded before ex-bond clearance. Applying the principle that no authority may take advantage of its own wrong, the text states that the importer could not be deprived of a benefit available at the time of import merely because departmental inaction prevented timely clearance. The rescission therefore did not defeat entitlement on these facts.

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Issues: Whether the appellant was entitled to the benefit of the exemption notification for the warehoused goods despite the notification being rescinded before ex-bond clearance, where the adjudicatory process was delayed by the customs authorities.

Analysis: The goods were imported and warehoused when the exemption notification was in force. The authorities kept the matter pending for a prolonged period despite having been aware of the classification issue from an early stage, and the notice and adjudication were not concluded with reasonable promptitude. The delay resulted in the appellant being made to incur warehouse rent for an extended period and, meanwhile, the notification was rescinded. In these circumstances, the appellant could not be deprived of the exemption solely because of the department's delay. The principle that no authority can take advantage of its own wrong was applied, and the appellant's liability could not be altered to its detriment by the delayed action of the department.

Conclusion: The appellant was entitled to the exemption benefit, and the rescission of the notification did not defeat that entitlement in the facts of the case.

Ratio Decidendi: Where customs authorities, by inordinate delay in investigation and adjudication, prevent timely clearance of warehoused goods, the assessee cannot be denied exemption that was available when the goods were imported merely because the exemption notification was later rescinded.

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