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2023 (9) TMI 1264 - CESTAT AHMEDABADDenial of exemption of DFIA benefits - Purchase of 1050 No.s of Lithium Ion Cells through High Seas Sales - N/N. 19/2015-CUS. - Lithium Ion Cells not been specifically used in export goods under paras 4.12 (i) (ii) of Foreign Trade Policy - HELD THAT:- Generally exemption notification is to be construed strictly but exemption notification dealing with export benefit schemes are liable to be liberally construed. Further a notification at threshold while deciding applicability is required to be liberally construed, same after the applicability threshold is passed, is liable to be construed strictly as a matter of interpretation. A substantive benefit in any case cannot be denied on such ground, specially when it is known that EV tractors use various chip based and lithium based sub assemblies of electronics. Leaned Advocate for the appellant emphasised that under DFR Scheme there is no prescription of actual user condition nor is one to one co-relation between the product exported and the product imported is required, and this is the uniqueness of the scheme. It was also pointed out by the learned Advocate and we agree with the proposition that impugned Customs Notification No. 19/2015 was under challenge and that the Hon’ble Allahabad High Court in SACHIN PANDEY VERSUS U.O.I. THRU. SECY. MINISTRY OF COMMERCE & INDUSTRIES AND ORS. [2019 (10) TMI 1057 - ALLAHABAD HIGH COURT] upheld non-correlation as one the feature of the DFIA Scheme. To the extent a particular material is capable of use even in any industry due to new patented or innovations in technology, the same shall be permitted to be imported against export of any specified material. It will be advisable to approach and decide the issue by the adjudicating authority keeping in mind that the DFIA Scheme unlike some other export scheme in the past which required some kind of a correlation in Tariff Heading does not require so as per various judicial pronouncements as well as by the application of the relevant notification - While the legislative purpose and intent of policy makers is not required to be looked into for interpreting any notification, it can be broadly analysed that if at any stage policy makers want to encourage innovation and advent of new technologies including usage of new materials, then such broad based imports within an industry and within same SION may be require to be encouraged, rather than persisting with old technologies and materials which can only restrict innovation. Appeal allowed.
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