Customs exemption cannot be denied for non-claim at import stage when notification conditions are otherwise satisfied.

A beneficial customs exemption could not be denied merely because it was not claimed in the Bill of Entry where the conditions of the notification were otherwise satisfied. The imported goods were shown to be of Sri Lankan origin, the origin certificate was on record, and the assessee promptly sought reassessment and refund after clearance. The procedural omission at the time of import did not defeat substantive entitlement to exemption, and denial solely on that ground was unsustainable.

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Issues: Whether the appellant was entitled to the benefit of Notification No. 26/2000-Cus. dated 01.03.2000, though it was not claimed at the time of filing the Bill of Entry and was sought later by way of reassessment and refund.

Analysis: The imported goods were found to be from Sri Lanka and the country-of-origin certificate was on record. The request for reassessment and refund was made promptly after clearance. The denial of the exemption only on the ground that it had not been claimed initially was held to be unsustainable where the conditions of the notification were otherwise satisfied. A procedural omission in claiming the notification at the time of import could not defeat the substantive entitlement to exemption. The reasoning was supported by the principle that a duty assessment must accord with the law and applicable exemption notification, and inadvertent omission or oversight does not by itself justify denial of a lawful benefit.

Conclusion: The appellant was entitled to the benefit of Notification No. 26/2000-Cus. dated 01.03.2000, and the denial of the exemption on the ground of non-claim at the original stage was rejected.

Ratio Decidendi: Where the conditions of a beneficial exemption notification are otherwise satisfied, the exemption cannot be denied merely because it was not claimed at the time of clearance if the assessee subsequently seeks reassessment or refund within the permissible time.

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