Case Law Details
M/s Pace Ventures Pvt. Ltd Vs C.C. Ahmedabad (CESTAT Ahmedabad)
Observing that there was no doubt that the green cardamom was used in making biscuits and pickles as flavouring agent and food additives, respectively, CESTAT Ahmedabad has rejected the department’s plea that since specific name of the product was not mentioned or ITC (HS) did not match in the DFIA licence, benefit thereunder was not available. It noted that the imported goods were covered under the broad description in the licence. The Tribunal also noted that there was no requirement of any actual use and that the only requirement was that whether the goods are capable of being used in export goods.
FULL TEXT OF THE CESTAT JUDGEMENT
The brief facts of the case are that the appellant imported 200 Kgs of Green Cardamom and sought duty free clearances of 80 kgs under DFIA No. 0310734495 dated 15.05.2013 issued against export of Vegetables Pickles as per Standard Input Output Norms and 120 kgs under DFIA No. 0310681612 dated 13.02.2012 issued against export of Biscuits as per Standard Input Output Norms, in terms of Chapter 4 of Foreign Trade Policy, 2009-14 para 4.2.1 and 4.2.2. The appellant filed Bill of Entry No. 4009223 dated 10.07.2019 claiming the exemption in terms of provision of FTP, 2009-14 read with Notification No. 98-2009-Cus dated 11.09.2009 that exempts material imported into India against a valid Duty Free Import Authorization (DFIA) in terms of the provisions of para 4.2.1 and 4.2.2 of FTP 200914, from the whole of Customs duty leviable thereon as specified in the first schedule to the Customs Tariff Act, 1975. The appellant had claimed exemption for the import of Green Cardamom under the description of „Relevant Food Additives‟ mentioned against Serial No. 2 of DFIA No. 0310734495 dated 15.05.2013 issued against export of Vegetable Pickles and covered under description of „Flavouring Agent‟ mentioned under Serial No. 6 of DFIA No. 0310681621 dated 11.02.2012 issued against export of Biscuits. The department has raised objection against claim of the appellant for clearances of goods under DFIA Licence inasmuch as the original authority vide letter dated 10.07.2019 intimated that Cardamom is not mentioned in the Licence No. 0311073445 dated 15.05.2013 as Food Additives for FDA approved and Licence No. 0310681621 dated 11.02.2012 as Food Colour/Flavouring Agent/Flavour improvers and that as the appellant had not produced any evidence that cardamom has actual use in export order, the DFIA Notification cannot be extended and the appellant was directed to clear the imported goods under payment of duty. Being aggrieved by the denial of DFIA import benefit to the Bill of Entry Number, the appellant filed appeal before Commissioner (Appeals), the Ld. Commissioner (Appeals) rejected the appeal on the ground that the cardamom was not actually used in the export of goods i.e. vegetable Pickles and Biscuits.
2. It was also observed that the DFIA Licence does not indicate the product description cardamom in the list of inputs hence, unless actual use in the export product is established, the appellant was not entitled to claim DFIA benefit. It was also observed by the Ld. Commissioner (Appeals) that the Customs Tariff Head (CTH) of import items allowing in 2 DFIAs are not telling with CTH of Green Cardamom. The appellant has not adduced any evidence to show as to how Green Cardamom could be used as Food Additives for Pickles and as Food Colour/Flavouring Agent or as Flavour Improvers in Biscuits, accordingly, the claim of the appellant for aforementioned benefit of DFIA is neither valid nor sustainable. Being aggrieved by the Order-In-Original, the present appeal filed by the appellant.
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