Preferential duty exemption under SAFTA cannot be denied without conclusive proof that the origin certificate is fake or incorrect.

Preferential duty exemption under SAFTA cannot be denied merely because a country of origin certificate was not verified by the issuing authority, where the certificate was issued by the competent authority, was neither withdrawn nor cancelled, and no finding of falsity was recorded. The Tribunal noted that customs had no conclusive verification report to displace the certificate or prove the origin declaration incorrect. In the absence of evidence that the certificate was fake, incorrect, or otherwise invalid, the exemption remained available and the denial was unsustainable.

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Issues: Whether the benefit of preferential duty exemption could be denied on the ground that the country of origin certificate issued under SAFTA was not verified by the issuing authority, when the certificate was neither withdrawn nor cancelled and no finding of falsity was recorded.

Analysis: The imported goods were accompanied by a valid country of origin certificate issued by the competent authority in Bangladesh under the SAFTA framework. The certificate was not rejected by the customs authorities, nor was it found to be fake or otherwise not genuine. No conclusive verification report was obtained from the issuing authority to displace the certificate or establish that the declaration of origin was incorrect. In these circumstances, the exemption could not be denied merely on suspicion, and the Tribunal followed its earlier view that a certificate of origin cannot be doubted unless the Revenue proves it to be fake or incorrect.

Conclusion: The denial of the exemption was not sustainable, and the assessee was entitled to the benefit of the notification.

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

Ratio Decidendi: A valid country of origin certificate issued by the competent authority cannot be disregarded for denying a preferential duty benefit unless the Revenue establishes, by conclusive evidence, that the certificate is fake, incorrect, or otherwise invalid.

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