Parry Enterprises India Limited Vs Additional Commissioner of Customs (Madras High Court)
The Madras High Court heard a batch of writ petitions involving a common issue arising from several orders-in-original passed by customs authorities in February and March 2023. The petitions were filed by an importer of Wheat Gluten and its customs broker. The dispute concerned imports made under Duty Free Import Authorisation (DFIA) issued for the export product “biscuits.” The petitioner purchased a DFIA issued during the 2009–2014 Foreign Trade Policy period and imported Wheat Gluten under six Bills of Entry, seeking exemption from customs duties based on a 2009 notification that allowed duty-free import of inputs covered under DFIA. The authorised officers initially accepted the petitioner’s declarations and permitted clearance of the goods without duty.
Subsequently, customs authorities initiated proceedings on the ground that Wheat Gluten was not covered under the DFIA that permitted import of Wheat Flour. The authorities issued summons, recorded statements, and issued six show-cause notices proposing denial of duty exemption, confiscation of goods, recovery of duty and cess, and imposition of interest and penalties. The petitioner responded that these issues had already been settled by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), particularly in Uni Colloids Impex Pvt. Ltd., which held that Wheat Gluten is covered by the description “Wheat Flour” for DFIA purposes. The petitioner argued that the department was bound by these decisions. However, the respondent passed orders-in-original rejecting the exemption claim and confirming the proposed actions.
