Commissioner of Customs Vs Devam Impex (Gujarat High Court)
Gujarat High Court held that the duty free import of “Walnut Inshell” against the entry of “Dietary Fibres” in the DFIA license issued under SION Norms E-5 for export Biscuits is permissible. Appeal stands disposed of, accordingly.
Facts- Respondent – M/s Devam Impex, a proprietorship firm, is a holder of valid Importer-Exporter Code (IEC), applied for an Advance Ruling u/s. 28H of the Act on the applicability of Notification No.25/2023-Cus dated 01.04.2023, which provides exemption from Basic Customs Duty on imports under Transferable Duty Free Import Authorizations.
The respondent – assessee is a transferee of DFIA issued against the export of Assorted Confectionary Products (SION E-1) and Biscuits (SION E-5). The respondent – assessee had filed an application u/s. 28H of the Customs Act, 1962 before the Customs Authority for Advance Rulings seeking a ruling on the permissibility of importing Inshell Walnuts by availing the benefit of Customs Notification No.25/2023-Cus dated 01.04.2023. The authority answered the question in the affirmative, holding that the import of Inshell Walnuts is permissible under the said DFIAs, subject to compliance with the value-based limitations endorsed therein.
The DFIA is a post-export duty credit instrument and is freely transferable in terms of Paragraph No.4.26 read with Paragraph No.4.28 (viii) of the Foreign Trade Policy. The Standard Input Output Norms for various export products are notified by the Director General of Foreign Trade. In the present case, the applicable notified norms are SION E-1 for the export of Assorted Confectionary Products and SION E-5 for the export of Biscuits.
