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2023 (11) TMI 574 - AT - CustomsEligibility for benefit under DFIA Scheme as per Notification No. 25/2023-Cus dated 01.04.2023 - import of Extra Virgin Olive Oil Denial of exemption on the ground that in terms of Para 4.12 of FTP (2015-20) & 2023 only input together with quantity which has been used in manufacturing the export product shall be allowed for import of DFIA - It further stated that there is no evidence to show that Extra Virgin Olive Oil is used in Export goods. HELD THAT:- The appellant has relied upon two technical opinions of IIT, Kharagpur. The one opinion dated 23.02.2023 confirms that Olive Oil can be considered for usage in edible purpose like cooking, in salads and in the preservation of food like specific pickle items , the other opinion dated 05.09.2023 inter alia confirms that “ It may be seen from the above referred list of edible vegetable oils the consumers are free to choose the fats and oils as per easy availability and affordability for the consumption in food as well as baked products such as biscuits/cookies/crackers and savoury items. In view of the potential health benefits of different olive oils on account of its composition as the richest source of monosaturated vegetable oil alongwith its minor constituents like polyphenols and tocopherols”. In the face of the aforesaid technical opinions and facts as recorded, it is found that the imported goods viz., Extra Virgin Olive Oil is fully covered by the Transferable DFIA’s produced by the appellant. On a conjoint reading of Para 4.12 (i) and 4.12 (ii) and para 4.29 of the FTP(2023) as specified in Custom Notification No. 25/2023-Cus dated 01.04.2023, it reveals that it is only in respect of inputs specified in para 4.29 that the material permitted in the authorization shall be of the same quality and technical characteristics and specifications as the materials used in the resultant product are permitted for import - neither the imported goods viz., Olive oil nor Salad oil/Vegetable Oil are specified as sensitive input under Para 4.29 of FTP. Therefore as per Board Circular No. 46 of 2007 and DGFT Policy Circular No. 50 of 2008, no correlation is required to be established for technical specification, quality and characteristics of inputs used in export goods and imported goods. The appellant is entitled to claim exemption from Basic Customs Duty under Notification No. 25/2023-Cus dated 01.04.2023 for their import of Extra Virgin Olive oil under the Transferable DFIA’s against Export of Vegetable Pickles and Biscuits. As regards the revalidation of DFIA’s in question, we direct the lower authorities to issue a certificate in terms of Para 2.20 (c ) of Hand book confirming the period of dispute , in case such a request is made by the appellant. Appeal allowed.
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