Exemption compliance and hearing rights led to remand after bond enforcement was challenged for delayed certificate production.

An exemption notification allowed the Assistant Commissioner discretion to extend time for producing the extract of accounts, and the assessee had sought extension while also producing a consumption certificate before bond enforcement. As the adverse orders were passed without granting a hearing, the summary enforcement of the bond and demand for differential duty were found unsustainable. The matter was remanded for de novo consideration of exemption eligibility, with directions to hear the assessee and examine the evidence supporting delayed compliance and utilisation of the imported goods.

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Issues: Whether the orders enforcing the bond and demanding differential duty for alleged non-production of the consumption certificate were sustainable, and whether the matter required remand for fresh consideration of the assessee's claim for exemption.

Analysis: The notification conferred discretion on the Assistant Commissioner to extend the time for producing the extract of accounts relating to receipt and utilisation of the imported goods. The record showed that the assessee had sought extension and had also produced a consumption certificate endorsed by the jurisdictional Superintendent of Central Excise before enforcement of the bond. The assessee was not granted a hearing before the adverse orders were passed. In these circumstances, the matter required a fresh examination of the genuineness of the reasons for delayed utilisation and of the evidence produced in support of exemption.

Conclusion: The impugned order was set aside and the matter was remanded to the jurisdictional Assistant Commissioner of Customs for de novo determination of exemption eligibility after hearing the assessee and considering the evidence produced.

Ratio Decidendi: Where the exemption notification permits extension of time for compliance and the assessee produces evidence supporting delayed fulfilment, denial of hearing and summary enforcement of the bond vitiate the order and require fresh adjudication.

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