Export under bond requires strict compliance with currency-condition; failure keeps excise duty demand enforceable.

Exports made under bond were governed by the special conditions in the relevant excise notification, including receipt of payment in freely convertible currency. Once the exporter elected to use that procedure, compliance with every attached condition was mandatory. Failure to satisfy the currency-condition meant the notification benefit could not be retained, and the duty demand remained enforceable under the excise provisions. The demand was upheld and the appeal failed.

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Issues: Whether duty demand was sustainable where goods were exported to Nepal under bond but the condition of receipt of payment in freely convertible currency under the notification was not fulfilled.

Analysis: The export was made under Rule 13(2) of the Central Excise Rules, 1944 read with Notification No. 150/81-C.E., which permitted export under bond subject to specified conditions, including receipt of payment in freely convertible currency. Having opted for that special procedure, the exporter was bound to satisfy all the conditions attached to the notification. Non-compliance with the currency condition meant that the benefit of the notification could not be retained, and the duty demand under the relevant excise provisions remained enforceable.

Conclusion: The duty demand was upheld and the appeal failed.

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