Home Case Index All Cases Customs Customs + AT Customs - 2017 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (3) TMI 629 - AT - CustomsDFIA benefits - validity of transfer of DFIA issued under SION E-5 (Biscuits) - Revenue contended that, since the importer is not the actual user of the exempt material (imported saffron), the claim of duty exemption under the said DFIAs was in breach of actual user conditions of the SION - N/N. 40/2006-Cus dated 01.05.2006 - N/N. 98/2009-Cus dated 11.09.2009 Held that: - neither the SION refer to any ITC (HS) Number nor the amendment sheets issued after the endorsement of transferability in the relevant DFIA License specify any ITC (HS) No. - out of 11 DFIA’s, 7 DFIA’s were issued prior to Public Notice No. 84/2010 dated 23.07.2010 and 1 DFIA was issued after the SION E-5 was amended vide PN 93 dated 01.02.2012. There is no actual user condition in existence prior to the issue of PN 84 dated 23.07.2010 and after 01.02.2012. - As regards the Balance 3 DFIA Licenses during the period on which Public Notice No. 84/2010 dated 23.07.2010, no such Actual user condition is mentioned even in these 3 DFIA Licenses. - There is no merits in the arguement of revenue that the amendments in the DFIA licenses have been obtained through fraudulent means and suppression of facts before the licensing authorities. The duty exemption cannot be denied by construing Para 4.1.3 of the FTP to mean that only food flavour was actually used in the export product is allowed for import. Even the RTI information reveals that in the absence of specification of saffron under Para 4.32.2 of HBP means no nexus is required to be established with earlier exported products - The exporter have discharged the stipulated export obligation as mentioned in the DFIA Licenses issued by several regional licensing authorities. Therefore the contention that the license brokers in collusion with exporters fraudulently obtained transferability endorsement from licensing authorities by manipulating serial nos. 5 (d) to serial no 8 to escape the actual user condition is totally misplaced. The exporters have no role in the imports once the DFIA has been endorsed with transferability and sold in the market for a consideration. Therefore there is no justification in imposing penalty upon the exporters. Extended period of limitation - Held that: - the SCN issued admittedly beyond the normal period of one year from the relevant date. The revenue did not allege any fraud and suppression of facts - the demand for extended period is clearly unsustainable in law. Appeal allowed - decided in favor of appellant.
|