Actual use of inputs and quantities not required for claiming DFIA benefit

Indian Chemical Corporation Vs Commissioner of Customs (CESTAT Ahmedabad)

CESTAT Ahmedabad held that there is no requirement of the actual use of inputs and quantities of imported goods for claiming DFIA i.e. Duty-Free Import Authorization benefit.

Facts- The present appeal has been filed by M/s. Indian Chemical Corporation against denial of Exemption from payment of Basic Customs Duty under Custom Notification No. 98/2009-Cus dated 11.09.2009 against their import of Titanium Dioxide (Rutile) – ITC (HS No. (32061900) on the strength of Transferable DFIA License No. 0310787806 dated 08.08.2014 issued against Export of Glass Bottles as per SION A-3627 by M/s. Piramal Glass Limited.

Conclusion- Held that there is no requirement of actual use of inputs and quantities for claiming DFIA benefit as held by this Tribunal in identical cases. We agree with the submission that 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 Rutile in the resultant product is not necessary for claiming DFIA benefit so long as Rutile is mentioned in the SION and in the DFIA.

FULL TEXT OF THE CESTAT AHMEDABAD ORDER

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