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2023 (7) TMI 489 - AT - CustomsDenial of Exemption from payment of Basic Customs Duty - import of Titanium Dioxide (Rutile) - denial on the strength of Transferable DFIA License issued against Export of Glass Bottles by M/s. Piramal Glass Limited - eligibility to claim benefit of N/N. 98 of 2009 - HELD THAT:- The appellant has imported Titanium Dioxide (Rutile) which is not in dispute. The DFIA produced by the appellant are endorsed with transferability by the RA which establishes that the Export obligation has been discharged by the Exporter M/s. Piramal Glass Limited and the license has been made freely transferable by licensing authorities - As per the list of import goods permitted for duty free import, inter alia shows the input item ‘Rutile’ is mentioned under the description of Glass Formers. It is not in dispute that Rutile refers to Titanium Dioxide as we observe from the technical references produced by the appellant. The ITC (HS) Code 32061900 mentioned in the DFIA against ‘Rutile’ is fully covered by the import goods of Titanium Dioxide. In the present case, DFIA is issued post discharge of export obligation and endorsed with transferability. The Hon’ble Bombay High Court in the case of SHAH NANJI NAGSI EXPORTS PVT. LTD. VERSUS UNION OF INDIA, MINISTRY OF COMMERCE & INDUSTRY, DIRECTORATE GENERAL OF FOREIGN TRADE AND JOINT DIRECTOR GENERAL OF FOREIGN TRADE [2019 (4) TMI 146 - BOMBAY HIGH COURT] has already held that under post transferability of DFIA, there is no actual user condition exists in the DFIA License, which is further concurred by the Hon’ble Allahabad High Court in the case of SACHIN PANDEY VERSUS U.O.I. THRU. SECY. MINISTRY OF COMMERCE & INDUSTRIES AND ORS. [2019 (10) TMI 1057 - ALLAHABAD HIGH COURT]. Keeping in with the judicial decorum and discipline, the ruling rendered by the higher judicial forums are bound to be followed. There is no requirement of actual use of inputs and quantities for claiming DFIA benefit as held by this Tribunal in identical cases. It is agreed upon that as long as the imported goods are covered by the description, value and quantity of DFIA as per SION, DFIA benefits cannot be denied. The actual use of Titanium Dioxide Rutile in the resultant product is not necessary for claiming DFIA benefit so long as Rutile is mentioned in the SION and in the DFIA. The appellant is entitled to claim DFIA benefit under Custom Notification No. 98 of 2009 for their import of Titanium Dioxide (Rutile) as a glass former against the Export of Glass bottles under DFIA Scheme. The lower authorities are directed to issue a certificate as per Para 2.13.1 of Hand Book for the purpose of revalidation, if such a request is filed by the appellant - Appeal allowed.
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