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2014 (8) TMI 358 - AT - CustomsImport against transferable duty free import authorization (DFIA) - fulfillment of conditions - import of Patchouli Oil by the appellant being a bona fide transferee - Notification No. 98/2009-Cus. dated 11.9.2009 - Whether Patchauli Oil is capable of being used in food industry in Assorted Confectionery - Held that:- in case of transferable license the nexus between the imported material and export product is not required to be proved afresh by the transferee/importer, once the imported material is otherwise covered by the advance license - In view of this authoritative judicial pronouncement the department cannot now loosely interpret the provisions under scheme by reading several contrasting instructions issued from time to time - Decision in the case of Hico Enterprises [2008 (4) TMI 117 - SUPREME COURT] followed. Merely because in the instant case, licenses are not transferable, it does not mean that the customs authorities are permitted to go beyond the license to deny exemption benefits. In the instant case, the specifications of the goods imported are squarely covered by the advance license issued by the licensing authority. The appellant has thus established a nexus as envisaged by the advance licensing scheme. The License Amendment Sheet dated 23.11.2011 (at page 24) at Sr. no. 4 mentions the modified Import Item as ‘Essential Oils’ without any further restriction as to its description or classification. ‘Patchouli Oil’ being admittedly covered under the scope of the permissible input ‘Essential Oil’ mentioned in the transferrable DFIA, the appellant is entitled for duty exemption under Notification No. 98/2009-Cus.dated 11.9.2009, without insisting on specifications, being a transferee of DFIA - Decided in favour of assessee.
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