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Issues:
- Interpretation of import-export norms for licensing - Validity of DEEC certificate and advance licence - Reliance on manufacturer and academic institution certificates - Discretion of Director General of Foreign Trade in issuing licences - Consistency between licence and DEEC certificate specifications Interpretation of Import-Export Norms for Licensing: The case involved the appellant importing polypropylene against an advance licence and DEEC certificate. The issue arose when the Department contended that the imported goods did not align with the import-export norms introduced in 1995. The Commissioner ruled against the appellant, denying the benefit of a specific notification. However, the Tribunal disagreed, emphasizing that the polypropylene in question could be used for manufacturing fishing nets based on expert certificates. The Tribunal highlighted that the absence of a specific mention of polypropylene grade in the policy prevailing at the licence issuance date was crucial in determining the applicability of import-export norms. Validity of DEEC Certificate and Advance Licence: The Tribunal stressed the importance of consistency between the advance licence and DEEC certificate, noting that both documents must align in specifications for the import to be valid. It emphasized that since both documents are issued by the licensing authority, applying different criteria to each would render the scheme unworkable. Therefore, the Tribunal held that if the licence was valid for import, the DEEC certificate with identical specifications would also be valid, covering the goods for exemption purposes. Reliance on Manufacturer and Academic Institution Certificates: The appellant presented certificates from the manufacturer and the Indian Institute of Technology, Mumbai, supporting the suitability of the imported polypropylene for manufacturing fishing nets. The Tribunal rejected the Department's argument against relying on these certificates, highlighting the academic institution's credibility and expertise in issuing impartial opinions. It noted that there was no evidence of bias or lack of qualification on the part of the certificate signatories. Discretion of Director General of Foreign Trade in Issuing Licences: The Tribunal emphasized the discretion of the Director General of Foreign Trade in issuing licences that may not strictly conform to the prevailing policy norms. It cited precedents to support the view that Customs cannot invalidate a licence for not adhering to norms, especially when the licensing authority has the authority to issue licences deviating from policy terms. Consistency Between Licence and DEEC Certificate Specifications: In analyzing the case, the Tribunal highlighted the necessity of coherence between the specifications in the advance licence and the DEEC certificate. It underscored that both documents must reflect identical details for the import to be considered valid. The Tribunal's decision to allow the appeal and set aside the impugned order was based on the alignment of specifications between the licence and the certificate, ensuring the legitimacy of the import transaction.
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