TMI Blog2023 (7) TMI 489X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2014 covered for the policy period (2009-14) whereas the main plank of the department s case rests on the premise that neither the appellant nor the original license holder provide the details of actually used Former Rutile use in the manufacturing of the export product in compliance of the mandate contained in Para 4.12 (i) and 4.12(ii) of FTP 2015-2020. On the above premise, the Ld. Counsel for the appellant submits that neither there is any condition in the notification no. 98 of 2009 nor under any of the provision of FTP-2009-14 to suggest that only those inputs with actual quantities are used in the resultant product are entitled to claim DFIA benefit under Notification No. 98 of 2009. 3.2 In any event, he submits that Titanium Dioxide Rutile is specific entry in the DFIA and therefore Para 4.12 (i) of FTP has no application in the present case. It is further submitted that DFIA in hand is a post export replenishment license which is governed by SION A-3627. He relies upon the Final Order No. A/11365/2020 dated 08.12.2020 passed by this Tribunal in the case of VKC Nuts Pvt. Limited vs. CC. Jamanagar (Prev.) (supra) and submits that the provision of Para 4.12 (i) and (ii) ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conditions‟ are satisfied clearly runs counter to the above judgements which are binding on authorities . 3.4 He submits that the original exporter M/s. Piramal Glass Limited on a reply to the Dy. Commissioner of Customs, Mundra has stated that DFIA is issued as per Para 4.2.1 and 4.2.2 of FTP (2009-14) and governed by SION notified by DGFT as per Para 4.2.2 of FTP. There is no condition to show that Titanium Dioxide (Rutile) is actually used in export goods for claiming DFIA benefits under Notification No. 98 of 2009. 3.5 He further submits that there is no requirement of actual use of inputs and quantities for claiming DFIA benefits as held by this Hon ble Appellate Tribunal in identical cases. It is submitted that DFIA is issued for Standard Input Output Norms are notified by the DGFT. 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 in the resultant product is not necessary for claiming benefits so long as Former Rutile is mentioned in the SION and in the DFIA. It is further submitted that Formers are required for glass forming process. He relied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 5.1 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. 5.2 As per Para 4.2.2 of FTP (2009-14), a DFIA issued for which Standard Input output Norms are notified. In the present context, Export of Glass Bottles/vials/phials/ampoules etc., are covered by SION A-3627. One of the input item is Rutile which is mentioned under Glass Formers . 5.3 The learned Authorised Representative s contention is that Glass formers are generic and number of inputs are mentioned against single quantity which attracts the provision of para 4.12 (i) and Para 4.12 (ii) of FTP- (2015-20). We are not impressed by this a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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