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2015 (11) TMI 1019 - AT - CustomsBenefit of duty-free exemption under DFIA scheme has been denied primarily on the ground that the import took place after the issue of the policy circular dated 31.1.11 - appellant contended that, the policy circular no 13 dated 31.1.2011 did not amend the SION norms otherwise there was no need to amend the same on 1.2.2011 - notification No 98/0 - Held that:- Letter was issued to a particular party but the Policy Circular 72 mentioned above still prevailed in general. Support is had from the Madras High Court judgement in the case of Hoewitzer Organic Chemical Ltd (2013 (6) TMI 303 - MADRAS HIGH COURT) holding that “the clarification dated 23.9.2010 and the Policy Circular dated 31.1.2011 is concerned, the same may not apply to a valid license, the transferability of which is endorsed. It is to be noticed that the clarification issued by the Ministry of commerce dated 31.7.2008 and the DGFT policy circular dated 24.3.2009, which were enforced prior to issuance of license in question dated 15.4.2010, will be made applicable to the license, as it extends the benefits of flexibility to import the alternative input/product mentioned in the SION and that appears to be the main tenor of the petitioners seeking release of the lactose stating that the clarification and the circular which were in force at the time of issuance of license will be applicable to the goods imported and not the subsequent clarifications.” Even if the actual user condition was brought in in 2011, fact remains that this condition has been deleted. The spirit of the judicial pronouncement is that the license has to be accepted as it is. And Customs cannot deny the benefit unless the DFIA is amended. Significantly, till date, the DFIA licenses have not been cancelled nor has any evidence been produced that the Customs have approached the DGFT for the same. - appellants are entitled to the benefit of Notification No. 98/2009-Cus. in terms of the DFIA presented to customs - Decided in favour of assessee.
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