Terminal date in exemption notification defeats post-deadline clearance, while CT-3 coverage extended to Chapter 55 goods.

Where an exemption notification fixed a terminal date in its Appendix, duty-free clearance after that date could not claim the concession, so the demand on the man-made fabrics was sustained. By contrast, a CT-3 certificate covering goods under Chapters 54 to 56 extended to Chapter 55 goods, so the narrower exclusion was incorrect and that duty demand was set aside. The result was partial relief to the assessee, with one demand upheld and the other removed.

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Issues: (i) Whether the duty demand on 2000 metres of man-made fabrics cleared to a 100% EOU after the expiry of the concession under Notification No. 123/81 was sustainable; (ii) Whether clearance of goods falling under Chapter 55 was covered by a CT-3 certificate authorising clearances under Chapters 54 to 56.

Issue (i): Whether the duty demand on 2000 metres of man-made fabrics cleared to a 100% EOU after the expiry of the concession under Notification No. 123/81 was sustainable.

Analysis: The concession for duty-free clearance under the notification was subject to a specific cut-off date in its Appendix. The goods were cleared after that date, so the benefit of the notification was not available. Earlier decisions relied upon by the appellant did not assist because the notification itself fixed the terminal date.

Conclusion: The duty demand of Rs. 22,494/- was upheld and is against the assessee.

Issue (ii): Whether clearance of goods falling under Chapter 55 was covered by a CT-3 certificate authorising clearances under Chapters 54 to 56.

Analysis: The CT-3 certificate authorised clearances of goods falling under Chapters 54 to 56 of the Central Excise Tariff. Chapter 55 goods therefore fell within the certificate's coverage, and the narrower view excluding them was not justified.

Conclusion: The duty demand of Rs. 12,375/- was set aside and is in favour of the assessee.

Final Conclusion: The appeal succeeded only to the extent of the second demand and failed on the first demand, resulting in partial relief to the assessee.

Ratio Decidendi: Where an exemption notification itself prescribes a terminal date, clearances made after that date cannot claim the benefit, and a certificate covering a range of tariff chapters extends to all goods within that range.

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