The Customs, Excises, Service Taxes Appellate Tribunal (CESTAT), Ahmedabad Bench held that the benefit of Duty-Free Import Authorizations (DFIA) is available for import clearance of Inshell walnut.
The appellant, VKC Nuts Pvt. Ltd. is a transferee of two transferable DFIA originally issued to Krish Food Industry (India) by the Office of the Director General of Foreign Trade under Foreign Trade Policy for the period of 2015-2020 against export of Biscuits from the open market.
The revenue rejected the claim on the ground that the appellant has not produced evidence to show that Inshell Walnut is actually used in export products. According to the revenue, only those inputs which are actually used in export products shall be allowed exemption from payment of customs duty in terms of Custom Notification No. 19/2015-cus. The import goods Inshell Walnut is not mentioned in the DFIA against input item description ‘Fruit /Food Flavour/Dietary Fibre”.
As per the Commissioner’s decision it was categorically decided that the appellant is not entitled to clear import goods against the DFIA Licences and also directed to pay applicable custom duty.
The Coram consisting of Ramesh Nair and Raju clarified that inputs which are covered under the description are entitled for DFIA exemption for claiming DFIA benefits by either exporter or transferee or the importer under the Transferable DFIA Scheme.
Therefore, it was held that it cannot be said that if the specific name of input in the present case ‘In shell Walnut’ is not mentioned in the licence or in the export shipping bill, benefit of DFIA cannot be extended particularly when the broad description is specified in SION as well as in the annexure to the DFIA licence.
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