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2022 (3) TMI 1002 - AT - CustomsRejection of claim for duty free benefits - import of Vital Wheat Gluten - It is submitted that the appellant has imported Vital Wheat Gluten Flour on the strength of a Transferable DFIA which clearly mentions ‘Wheat Gluten Flour’ under the description of Wheat Flour in the said authorisation - applicability of Custom Notification No. 19 of 2015 - HELD THAT:- Once the DFIA is made transferable, the Exporter is permitted to transfer the inputs to any third party as per the provisions of Para 4.29 of the FTP- 2015-2020. Both wheat gluten and wheat gluten flour is mentioned in the DFIA. Therefore, it can be fairly accepted that both wheat flour and wheat gluten is used for manufacturing Biscuits which is Exported. Since both the inputs are used in the resultant export goods, the licensing authorities have correctly issued the DFIA to that extent. The department is also not disputing this aspect except for the sole contention that the ITC (HS) Number of wheat gluten flour is not mentioned in the DFIA. Compliance of Para 4.12 (i) and (ii) of FTP - HELD THAT:- It is fairly agreed that Wheat Flour/Wheat Gluten are specific items and not Generic or alternative inputs. A single quantity is mentioned in the DFIA. The provision of Para 4.12 (ii) of FTP can be applied only when SION prescribes alternative inputs with relevant quantities, which shall be allowed in proportion to the quantities actually used in export product. No such inputs or quantities are mentioned against the input item. Therefore the above provision cannot be applied in the present case. As per Board Circular No. 46 of 2007 and DGFT Circular 50 of 2008, no correlation is required for technical characteristics/quality and technical specification between imported goods and export goods unless item is specified under Para 4.55.3 of HBP (New Para 4.30 of FTP). Neither Wheat Flour nor Wheat Gluten Flour is a specified item under Para 4.30 of FTP. It is settled law that Board Circulars are binding on the department. Further DGFT Policy Circular 72 of 2008 allows import of alternative inputs either used or capable of using in the export goods. In this case, it is evident from the DFIA that the Exporter has used both Wheat Gluten as well as Wheat Gluten Flour in the Export goods i.e. Biscuits. Appeal allowed - decided in favor of appellant.
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