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      (5)         ***         ***              ***              ***
      (i)         *       *           *       *          *        *
      (ii) goods means –
            (a)   capital goods;
(b) office equipment (including computer systems, software, fax/machine, telephone); and
(c) raw materials, components, intermediates, consumables and parts other than agricultural and dairy products;

25. Thereafter, the Central Board of Excise and Customs issued circular No. 10/2004-Cus. dated 30.01.2004 stating that DGFT had sought clarification from the Department of Revenue whether the restriction regarding agricultural and dairy products would apply to all products derived from agriculture/diary origin. Central Board of Excise and Customs (Board) clarified that restriction regarding agriculture and dairy products as specified under the scheme shall mean that import of all types of products derived from agriculture/diary origin including crude edible oil shall not be permitted. Relevant portion of the circular dated 30.01.2004 reads as under:

Import of all edible oils classified under Chapter 15 of ITC (HS) classification of export and import items, shall be allowed under the scheme only through STC and MMTC.

29. As we have noted, notification No. 53/2003-Cus. dated 01.04.2003 is a statutory notification issued under sub-section (1) of Section 25 of the Customs Act. By way of the said notification, exemption is granted when certain goods are imported into India against a duty free entitlement credit certificate issued under paragraph 3.7.2.1(vi) of the EXIM policy. The goods which are exempted from payment of customs duty etc. means capital goods, office equipments (including computer system, software, fax/machine, telephone) and raw materials, components, intermediates, consumables and parts other than agricultural and dairy products. From a plain reading of the said notification, it would mean that agricultural and dairy products are excluded from exempted goods. In other words, agricultural and dairy products would not be covered by the notification No.53/2003-Cus. dated 01.04.2003 and would be liable to pay customs duty, etc. on merit. On the other hand, circular No.10/2004-Cus. dated 30.01.2004 was issued by the Board following a clarification sought by DGFT from the Department of Revenue as to whether the restriction regarding agriculture and dairy products would apply to all products derived from agriculture/dairy origin. Board clarified that the restriction regarding agriculture and dairy products as specified in the scheme for status holders and service providers shall mean that import of all types of products derived from agriculture/dairy origin including crude edible oil shall not be permitted.