TMI Blog2015 (4) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... rly understood that adequate justification for revalidation has to be made available to DGFT. And this information can only be made available by Customs. The appellant has merely sought a statement for issue by Customs to the DGFT certifying that the admissibility of import of Saccharin/Ascorbic Acid against the DFIAs licenses remained in litigation. In fact the Commissioner (Appeals) acknowledges this position but comes to a conclusion that there are no express provisions for issue of certificates for revalidation. - Commissioner (Appeals) accepts the fact that the licenses are to be revalidated by the licensing authority but does not acknowledge that the licensing authority has no information about the prolonged litigation through the imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f various chemicals and trading thereof. They obtained transferable DFIAs issued against export of chemicals such as Soda Ash. The said DFIAs permit duty free import of, inter alia, Corrosion Inhibitors/Water Treatment Chemicals. The appellants submitted representations to Customs stating that the DFIAs could not be debited (utilized as the department had not permitted duty free import of Sodium Saccharin, Ascorbic Acid by importers against DFIA Licences in terms of benefit under Customs Notification No. 40/2006. This dispute regarding Saccharin was decided by Hon'ble CESTAT Mumbai vide Order No. A/318/13/CSTB/C-I dt. 23.1.2013 in the case of M/s. Nandlal Bankatlal wherein the Tribunal held that any product which is a corrosion Inhibito ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nst the spirit of Import Export Policy and export incentives declared by the Government. However, I find that there are no express provisions, for issue of certificates for the licenses expired in the hands of the Importer/Exporter due to litigation raised by the customs authority. In view of the above findings, the appeal is disposed off . Against this order of Commissioner (Appeals), the appellant is in appeal before us. 3. Heard both sides. 4. The Ld. Counsel for the appellants stated that the appellants could not utilize the DFIAs legally transferred in their name for claiming duty free benefits for import of Sodium Saccharin/Ascorbic Acid against input goods mentioned in the licenses, namely Corrosion Inhibitor, Water Treatment C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ording to him, only DGFT has proper jurisdiction to revalidate licenses. It was also submitted that the earliest request by the appellant for issue of a certificate is dated 19.5.2010 whereas the Commissioner (Appeal)'s order allowing appeal filed by another importer in respect of Sodium Saccharin was issued on 1.7.2007 and in the case of Ascorbic Acid on 14.10.2009. 6. We have carefully considered the submissions of both sides. At the outset, we find that the lower authorities have misread the provisions of law. As per Para 2.13.1 of the Handbook of Procedures, only the licensing authorities can permit the revalidation of freely transferable DFIAs. There is no dispute on this. But it should be fairly understood that adequate justifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the license expired while in direct custody of the customs authority. Once matter is in litigation, it is not in the hands of the importer or the customs authority to finalize the issue within the time frame so that such situation does not arise . The Commissioner (Appeals) accepts the fact that the licenses are to be revalidated by the licensing authority but does not acknowledge that the licensing authority has no information about the prolonged litigation through the importer went while importing the said goods under DFIAs. This information only, can help DGFT to allow revalidation. 7. The Ld. AR in his written submissions has raised the issues of evidence regarding transfer of licenses and amounts unutilized, validity of licenses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertificate to the DGFT to the effect that the DFIA Licenses could not be utilized due to prolonged litigation. 8. We also note that apart from being transferees of licenses, the appellants have also imported Saccharin and on provisional basis during the period in dispute. Therefore, it cannot be said that the appellants were only making their request on the basis of litigation undergone by other importers. In any case, the fact that the import of said goods under DFIAs was in dispute is sufficient ground for holding that the licenses could not be utilized due to litigation with customs. It is to be noted that the licenses are for specific inputs. 9. The whole scheme of DFIAs is to allow duty free imports against exports. Denial of ben ..... X X X X Extracts X X X X X X X X Extracts X X X X
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