Duty exemption cannot be denied when the required undertaking was duly posted by registered post on time, despite later receipt.

Posting an undertaking by registered post on the stipulated date was treated as sufficient compliance with a duty exemption notification, even though the Assistant Commissioner's office received it later. The operative requirement was that the undertaking be with the Assistant Commissioner, and the benefit could not be denied solely because acknowledgment of receipt came after dispatch. CESTAT, Bangalore accordingly set aside the duty demand to the extent covered by the exemption and granted relief to the assessee.

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Issues: Whether the benefit of duty exemption under the notification commenced from the date on which the undertaking was posted by registered post or only from the date of its receipt in the Assistant Commissioner's office.

Analysis: The appellant had admittedly posted the undertaking addressed to the Assistant Commissioner on 1-4-2000, and the Revenue did not dispute that fact. The notification required the undertaking to be with the Assistant Commissioner, but the Court held that posting the undertaking by registered post on the stipulated date was sufficient compliance in the circumstances of the case and that the benefit could not be denied merely because the office acknowledged receipt on a later date.

Conclusion: The demand of duty was set aside to the extent of Rs. 35,128/-, and the appeal was allowed to that extent in favour of the assessee.

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