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2. FTP 2015-20 formulated for the period from 1 st April, 2015 to 31st March, 2020 floated a Duty Free Import Authorisation Scheme (DFIA) to regulate export viz-a-viz import of the goods. It is a post export scheme which gave exemption from basic custom duty while importing specified inputs. The design of the scheme is like, the merchant/export trader, has to file on-line application to the concerned regional authority before exporting the goods under DFIA scheme. It is stipulated that export shall be completed within the span of twelve months from the date of generation of particular file number. On completion of export and realization of proceeds, one has to apply for issuance of DFIA with the concerned authority. On each transaction, 3 jgwpWP8268.17.odt separate DFIA is issued as per the Standard Input Output Norms (SION). On issuance of authorisation the trader will get exemption from paying basic custom duty on the goods allowed to be imported under scheme.

7. The respondent - Union of India resisted the petition vide reply dated 23.01.2018. The respondent has not disputed the DFIA scheme as formulated by the Central Government under the Foreign Trade Act. It is stated that the regional authority issues DFIA which allows import of inputs without payment of basic custom duty. DFIA is being issued on post export basis i.e. only after the completion of export of goods. DFIA is issued only for the products notified by the DGFT as per SION. Precisely SION has fixed the importable item with its quantity for particular exportable item. SION E75 allows the import of 1568 kg of maize, on export of 1000 kg 5 jgwpWP8268.17.odt of maize starch powder.

12. The principle issue for consideration is about petitioner's entitlement for importing maize popcorn vide SION entry as E75 under DFIA scheme. FTP for the year 2015-20 allows DFIA on post export basis for specified products, which are notified under SION. The petitioner has exported maize starch powder under DFIA scheme which is covered under SION entry E75. The said notified item permits import of maize of specified quantity in proportion. Under the scheme petitioner imported variety of maize namely popcorn maize and claimed authorisation i.e. exemption from paying basic custom duty.

14. Before entering into controversy, it would be apposite to reproduce the relevant provisions of DFIA:-

4.25 DFIA SCHEME
(a) Duty Free Import Authorisation is issued to allow duty free import of inputs. In addition, import of oil and catalyst which is consumed/utilised in the process of production of export product, may also be allowed.

(b) Provisions of paragraphs 4.12, 4.18, 4.20, 4.21 and 4.24 of FTP shall be applicable to DFIA also.