Home Case Index All Cases Customs Customs + AT Customs - 2019 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (6) TMI 225 - AT - CustomsBenefit of duty free import - inshell walnut - against the DFIA issued for export of biscuit - Denial of benefit on the ground that CTH mentioned in the Annexure –A to DFIA are different from the CTH mentioned in the BE - HELD THAT:- The issue raised in the above appeal is also covered by the order by the Hon’ble Bombay High Court in the case of USMS SAFFRON CO. INC. VERSUS COMMISSIONER OF CUSTOMS (ACC & EXPORT) MUMBAI [2015 (11) TMI 820 - CESTAT MUMBAI]. The appellate tribunal held that ITC (HS) mentioned in the DFIA is not a criterion to get the benefit under FTP and Custom provisions as long as the items imported falls under the description of the goods mentioned in the DFIA. In that case, the appellate tribunal held that the imported saffron is covered by the description food flavour mentioned in the DFIA irrespective of ITC (HS) mentioned in the DFIA. We also find that Hon’ble Bombay High Court in the case of USMS Saffron upheld the order of the appellate tribunal holding saffron can be imported as food flavour without payment of duty against DFIA issued for export of biscuits. We find considerable force in the submission of the appellant that the term ‘generic input’ and ‘alternative input’ are not defined under FTP (2009-14) and 2015-2020 and the relevant Public Notice No. 93 dated 01.02.2012 for export of biscuits under DFIA covered by SION E-5 and SION E-5 mentions that the description of import item in very specific details and rationalised quantities. Once the imported goods satisfy the description given in the SION and reproduced in the DFIA, they are clearly entitled to claim benefit without payment of duty on the strength of the valid DFIA irrespective of ITC (HS) No. mentioned in the DFIA. Interestingly, SION does not refer to ITC (HS) Codes and only the description and quantity of the goods allowed to be imported are mentioned - also no actual user condition is specifically mentioned in the SION E-5. In a post export entitlement scheme like DFIA, in our view once the endorsement of transferability is made in the DFIA, the imported goods only requires to be covered by the description, quantity mentioned in the DFIA within the overall CIF Value as specified therein. Thus, the appellant is entitled to clear the imported ‘Inshell Walnut’ against the DFIA License obtained against export of ‘Biscuits and produced before the Customs authority. Appeal allowed - decided in favor of appellant.
|