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2015 (4) TMI 381 - AT - CustomsRevalidation of Duty Free Import Authorization Licenses (DFIA) - DFIAs could not be debited (utilized as the department had not permitted duty free import of Sodium Saccharin, Ascorbic Acid by importers against DFIA Licences in terms of benefit under Customs Notification No. 40/2006 - could not be utilized due to the ongoing litigation - Held that:- Lower authorities have misread the provisions of law. As per the Handbook of Procedures, only the licensing authorities can permit the revalidation of freely transferable DFIAs. There is no dispute on this. But it should be fairly understood that adequate justification for revalidation has to be made available to DGFT. And this information can only be made available by Customs. The appellant has merely sought a statement for issue by Customs to the DGFT certifying that the admissibility of import of Saccharin/Ascorbic Acid against the DFIAs licenses remained in litigation. In fact the Commissioner (Appeals) acknowledges this position but comes to a conclusion that there are no express provisions for issue of certificates for revalidation. - Commissioner (Appeals) accepts the fact that the licenses are to be revalidated by the licensing authority but does not acknowledge that the licensing authority has no information about the prolonged litigation through the importer went while importing the said goods under DFIAs. This information only, can help DGFT to allow revalidation. It is for DGFT to revalidate the Licenses. The fact remains that the Licenses were presented to the Customs Authorities for debit but the goods were cleared on provisional basis. Due to ongoing litigation licenses were also not presented for debit for obvious reasons. The appellants cannot be expected to present Licenses for debit when the department continued to refuse duty free import against the said Licenses. - Commissioner (Appeals) himself held that "once matter is in litigation it is not in the hands of the importer or the Customs Authorities to finalize the issue" within the time frame of the licenses. In fact, the licenses remained in constructive custody of customs because customs refused to debit the licenses for duty free import of such goods by all importers. - Decided in favour of assessee.
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