Principal Commissioner Of Customs ... vs M/S. Olectra Greentech Limited on 14 June, 2024
(7) Appeal No. C/30081/2024
3.3 We further find that in various decisions reported by either side that it is the possibility of use
of product against the product exported which has been considered, as criteria for permitting
import of product. In Commissioner of Customs (export), Nhavasheva V/s. Sparkling Traders Pvt
Ltd. as reported in 2019 (368) ELT 961 (Tri.-Mum) ascorbic acid having multiple applications in
pharmaceutical formulation food product etc, was allowed as "corrosion inhibitor". The expert
opinion was considered sufficient in this regard to allow the benefit of exemption Notification No.
40/2006-customs pertaining DFI Scheme. It was also pointed out in the course of the decision that
importer need not to prove nexus between imported goods and input used in export product so
long as imported product was capable of being used under description of license. Actual use in
export product was also considered as relevant and it sufficed if capability of being used by the
product imported existed. Further in Unibourne Food Ingredients LLP delivered vide Final Order
No. A/10255/2022 decided on 17.03.022 this Bench while dealing with duty free benefits to vital
Wheat Gluten flour under Custom Notification No. 19/2015, (which pertains to DFIA Scheme),
considered non mention of Wheat Gluten in DFIA no bar when wheat flour description existed in
the documents. The Bench held the appellant is only required to satisfy that the product
description mentioned in DFIA, was capable of use and there stipulation in Notification 19/2015
that material should be actually used in export product did not exist. During course of its decision,
the bench relied upon the decision of Commissioner of Customs Calcutta Vs. G.C Jain as reported
in 2011 (269) ELT 307 (S.C) to hold that the term used as "material" required for manufacture of
export products would encompass such items also which are not only directly used or but are
usable as such in the manufacturing process of the industry." In 2019 (367) ELT 335 (Bom.)