Sachin Pandey Vs U.O.I. (Allahabad High Court)
The Allahabad High Court dismissed a public interest litigation challenging the implementation of the Duty Free Import Authorization (DFIA) Scheme under the Foreign Trade Policies (FTP) 2009-14 and 2015-20. The petitioner sought directions to prohibit duty-free imports under transferable DFIAs unless three conditions were fulfilled: the technical specifications, quality and characteristics of imported goods were declared in shipping bills, the imported goods were actually used in the manufacture of the export product, and the imported goods were not merely alternative inputs capable of being used in the export product. The petitioner also sought departmental action against officials and prosecution and recovery proceedings against exporters and importers allegedly availing undue duty benefits.
The Court noted that the Foreign Trade Policy was framed under the Foreign Trade (Development and Regulation) Act, 1992 to promote international trade, generate employment, earn foreign exchange, and regulate imports and exports. Under FTP 2015-20, the DFIA Scheme is a post-export scheme granting exemption from basic customs duty on specified inputs after fulfillment of export obligations and issuance of authorization under the Standard Input Output Norms (SION). The relevant customs notification grants exemption to imports made under valid DFIA authorizations subject to the prescribed conditions.
