Extended export obligation period under DEEC scheme defeats customs duty and penalty where compliance is completed in time.

Where export obligation under the DEEC scheme was validly extended by the competent export authority and then fulfilled within the extended period, customs exemption could not be denied merely because the original deadline had expired. The Tribunal also followed the settled view taken in the assessee's earlier appeal, applying judicial discipline to the same issue. On that basis, customs duty, interest, and penalty were held not leviable, the impugned order was set aside, and relief was granted to the assessee.

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Issues: Whether customs duty and penalty were leviable where the export obligation under the DEEC scheme was fulfilled within the extended period granted by the export control authorities.

Analysis: The dispute turned on the effect of fulfilment of the export obligation after extension of time. The Tribunal held that once the competent export authorities extended the period and the export obligation was completed within that extended period, the customs exemption could not be denied merely because the original period had expired. It also noted that the issue had already been decided in the assessee's own earlier appeal and that judicial discipline required following the settled view.

Conclusion: The levy of customs duty, interest, and penalty was not sustainable, and the issue was answered in favour of the assessee.

Final Conclusion: The impugned order was set aside and the appeal was allowed with consequential relief according to law.

Ratio Decidendi: Where export obligation under an import exemption scheme is validly extended by the competent authority and is fulfilled within the extended period, customs duty and penalty are not leviable for failure to meet the original time limit.

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