TMI Blog2019 (10) TMI 1057X X X X Extracts X X X X X X X X Extracts X X X X ..... as observed that The Commissioner of Customs, ICD Ludhiana, is directed to allow exemption of basic customs duty in respect of the import of Soda Ash by the petitioner by debiting the DFIA licence under Bill of Entry no. 7080616 dated 16.10.2014. There are no reason to take a different view to take away the benefits otherwise available under the DFIA Scheme under the Foreign Trade Policy, whether of 2009-14 or 2015-20, merely to satisfy the petitioner. The aforesaid judgments of the Punjab and Haryana High Court still hold the field, so far as permitting duty-free imports under DFIA are concerned. The contention of the petitioner that duty free import of any goods under DFIA cannot be permitted unless each of the above-mentioned three essential conditions are satisfied, clearly runes counter to the above judgments which are binding on the authorities - Neither the officers of the respondents can be proceeded against for following such binding precedents nor can the exporters or importers be subjected to any onerous conditions, declaration, bond or undertaking contrary to these binding precedents, which if taken would be non-est. There is no merit in any of the prayers of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority before exporting the goods under DFIA scheme. It is stipulated that export shall be completed within the span of twelve months from the date of generation of particular file number. On completion of export and realization of proceeds, one has to apply for issuance of DFIA with the concerned authority. On each transaction, separate DFIA is issued as per the Standard Input Output Norms (SION) . On issuance of authorization the trader will get exemption from paying basic custom duty on the goods allowed to be imported under scheme. 6. In order to give effect to the DFIA Scheme contained in Foreign Trade Policy 2015-20, the Government of India, Ministry of Finance, issued Notification dated 1st April, 2015 in exercise of powers conferred upon it under Sub-section (1) of Section 25 of Customs Act, 1962. The said notification exempts material imported into India against a valid DFIA Scheme in terms of paragraph 4.25 and 4.27 of the Foreign Trade Policy, 2015-20, subject to the conditions contained therein, which are reproduced below: DUTY FREE IMPORT AUTHORIZATION SCHEME (DFIA) 4.25 DFIA Scheme (a) Du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rted goods are specifically declared in the shipping bills by the exporter, the imported goods are actually used as inputs in manufacture of export product and the imported goods are not merely alternative inputs or goods capable of using in the export product; b) directing the respondents to initiate appropriate departmental and/or other proceedings against the officers who are responsible for permitting duty free import of goods without ensuring the aforesaid requirements, by issuing such DFIAs or allowing imports thereunder; and c) directing the respondents to initiate criminal prosecution under the provision of Section 135 and recovery proceedings under Section 28 of the Customs Act, 1962 against those exporters/importers who are availing undue duty benefits under DFIA Scheme without satisfying the aforesaid requirements. 8. According to the petitioner, duty free import of any goods under Transferable DFIA cannot be permitted unless each of the following 'three essential conditions' are satisfied- a) the technical specification/quality and characteristics of the imported goods are specifically declared ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tify their inaction cannot be permitted to take shelter of these judgments because none of these judgments are applicable in the current scenario in respect of the DFIA Scheme, as it exist now. 11. Sri S.B. Pandey, learned ASG for the respondent no. 1 (Union of India) and respondent no. 2 (DGFT) and Sri Dipak Seth, learned counsel appearing for the respondent no. 3 (Commissioner of Customs, Lucknow), opposed the admission of the PIL and submitted that the PIL is misconceived and the claims made therein are erroneous. 12. We have heard the parties and have carefully perused the records. 13. We are unable to agree with the petitioner. Directions are being sought by the petitioner against the respondents without any justifiable grounds. The DFIA Scheme as also the earlier Transferable DEEC Schemes are based on the Standard Input Output Norms. In any event, there is no need to go into the issue of applicability or otherwise of the various judgments referred by the petitioner. 14. In Pushpanjali Floriculture Pvt. Ltd. Vs. Union of India, reported in 2016 (340) ELT 32, a Division Bench of the Hon'ble Punjab and H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch DFIAs. Else, the DFIAs would be rendered worthless for all such holders/transferees of the DFIAs. This, in our view, could never have been the intention of a beneficial schemes such as the DFIA Scheme. It is trite that beneficial schemes had to be so interpreted as to extend the availability of the benefit thereof, rather than accorded any restrictive interpretation, which would render the schemes worthless to the persons who seek to avail the promised benefit. 33. DGFT Circular No. 72 dated 24.03.2009 which was also in existence on the date of issuance of the subject DFIAs, further clarified specifically in the context of the DFIA Scheme that since the objective of the SION was to allow duty free import of the inputs which are actually used or were capable of being used in the export product, the exporter had the flexibility to import the alternative inputs / products mentioned in the SION. This guideline, therefore, would govern the availability of import benefits under the subject DFIA during their lifetime. 40. Any other interpretation would also render the statutory SION norms a dead letter. DFIA is issued in terms o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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