Case Law Details
VKC Nuts Pvt Ltd. Vs C.C. – Jamnagar (Prev) (CESTAT Ahmedabad)
‘Inshell Walnut’ is not only capable of being used but invariably used for manufacture of biscuits as fruit/flavor/dietary fibre. This has been held in appellant’s own case by the Hon’ble CESTAT-Mumbai in Final Order No. A/85730/2020 dated 11.09.2020. Moreover, as per the custom’s lab report dated 08.08.2018 and various technical opinions as discussed above, the Inshell Walnut is used as flavor or fruit/nut or dietary fibre in the manufacture of biscuits/cookies and confectionary. Therefore, there is no dispute that inshell walnut is correctly covered under the description of goods i.e, fruit/flavour/dietary fibre as mentioned in the annexures annexed along with DFIA Scheme as well as specified in SION.
In the case of Shah Nanji Nagsi Exports Pvt Ltd, The Hon’ble Court has rejected the contention of the revenue that the import goods should be actually used in the manufacture of export goods. In other words, actual user condition is not applicable unless it is specifically mentioned therefore, applying the same finding of the Hon’ble Court, in the present case also the contention raised by the revenue that the inshell walnut was not actually used in the export goods has no substance for denying the benefit of DFIA Scheme .The Hon’ble court in Shah Nanji Nagsi Exports Pvt Ltd(Supra) have categorically considered the amended provision of DFIA under Foreign Trade Policy 2015-20 and taken a view that if the input is covered under the description given and even if the input is not used actually in the export product the benefit of DFIA should be extended therefore, all the issues raised by the revenue in the present case have been elaborately dealt with by the Hon’ble Mumbai High Court of Nagpur Bench.
We as per judicial discipline cannot deviate from the ruling made by the Hon’ble High court. Accordingly, the appellant is entitle for DFIA Scheme in respect of import of inshell Walnut.
The imported goods “In shell Walnuts” are not specified under Sensitive items under Para 4.30 of FTP- (2015-2020) of DFIA’s. Therefore the exporter is not required to give a declaration of the technical specification, quality and characteristics of inputs used in the resultant product. The Central Board of Excise & Customs vide Circular No. 46 of 2007 had earlier clarified the above provisions which existed under the previous policy period under Para 4.55.3 of HBP).
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