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Issues involved: Stay of operation of impugned order regarding Duty-Free Import Authorization (DFIA) u/s 0310395464 dated 21-8-2006, requirement of certificate from Central Excise authorities for non-availment of CENVAT credit, entitlement to transfer raw materials under Notification No. 40/2006-Cus.
The appellant filed an application for stay of operation of the impugned order which upheld the Assistant Commissioner's decision on DFIA No. 0310395464 dated 21-8-2006. The DFIA allowed duty-free import of Hot-Rolled Non-alloy Steel Sheets/Strips/Wide coils and Zinc for export of galvanized steel sheets/strips/wide coils. The lower authorities demanded a certificate from the Central Excise officer regarding non-availment of CENVAT credit on inputs used in the exported products. The appellant argued that this condition cannot be imposed for a DFIA issued before 1-4-2007, citing support from Board's Circular No. 11/2009-Cus. dated 22-5-2009 [para 9(d)]. They claimed entitlement to import raw materials without duty payment and transfer goods after obtaining DGFT's endorsement of transferability, without needing a certificate from Central Excise authorities. The learned DR reiterated the Commissioner (Appeals)' findings. Upon careful consideration, it was acknowledged that the DFIA was obtained after fulfilling the export obligation and obtaining endorsement of transferability. Therefore, the appellant had the right to transfer the DFIA or any raw material imported under it. However, if the current customs condition is enforced, the appellant would have to repay the foregone CVD on any raw material imported under the DFIA. In light of this, it was decided that the lower authorities' decision should be stayed until the appeal's final disposal for fairness to the appellant. Additionally, in the interest of revenue, it was directed that the early posting petition filed by the appellant on 7-10-2009 should be scheduled before the Bench promptly.
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