Transferable DEEC licence validity at shipment and Bill of Entry filing preserved exemption despite later expiry before bond clearance.

A transferable DEEC licence was treated as sufficient for exemption where it was valid at the time of shipment and filing of the Bill of Entry, even though it had expired before clearance from bond. The Tribunal relied on earlier decisions, held the issue was no longer res integra, and read Notification No. 31/97-Cus. as requiring validity at the relevant import stage rather than at bond clearance. It further accepted that the licence related to the goods and that an importer could be represented by a person claiming on its behalf. The objection based on later lapse of the licence was rejected, and the benefit of the notification was upheld.

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Issues: Whether goods imported under a transferable DEEC licence could be cleared when the licence was valid at the time of shipment and filing of the Bill of Entry, even though it had lapsed by the time of clearance from bond.

Analysis: The Tribunal held that the controversy was already settled by earlier decisions and therefore was no longer res integra. It noted that Notification No. 31/97-Cus. contemplated coverage of the imported materials by a valid DEEC licence and that the relevant requirement was satisfaction of validity at the time of shipment and filing of the Bill of Entry. The Tribunal further treated the licence as relating to the goods and accepted that the expression of import could include a person claiming on behalf of the importer.

Conclusion: The objection based on lapse of the licence at the time of clearance from bond was rejected, and the issue was decided in favour of the assessee.

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

Ratio Decidendi: Where a transferable DEEC licence is valid at the time of shipment and filing of the Bill of Entry, subsequent lapse before bond clearance does not defeat the benefit of the exemption notification if the imported goods were otherwise covered by the licence.

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