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TMI Blog2010 (4) TMI 366X X X X Extracts X X X X X X X X Extracts X X X X ..... s, the imported materials have to be of the same quality, technical characteristics and specifications as the materials used in the said resultant products.In the case of the appellant, the exported products were electric motors and imported materials are bearings. On the ground that the quality, technical characteristics and specifications of the bearings used in the exported motors were not available in detail and therefore it could not be confirmed that the imported bearings were similar to the ones used for the manufacture of motors, exemption was denied. Hence the appellants are in appeal. 2. Shri J.C. Patel, learned advocate, on behalf of the appellants made the following submissions : Bearing is described as one of the items under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lls and other export dxocuments which is again verified by the customs department before allowing imports. Therefore the only condition attached to the bearings "i.e., upto 50 mm dia 'has to be fulfilled. There is no stipulation in the authorization that only a particular size of bearings are allowed to be imported. The sizes of bearings are completely irrelevant in this case because the licensing authorities have not indicated any such condition in the authorization. Under the DFIA Scheme there is no individual CIF value required to be mentioned against each input item. The only condition is that the value of inputs are not to exceed the overall CIF value required to be mentioned against each input item. The only condition is that the valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... produced is 1,00,000 single phase shell construction motors with aluminum of cast iron or sheet metal end covers of 124 watts of FOB Rs. 9 Crores approximately taken together. On this basis the value of one motor exported comes to Rs. 900 per piece, where as the average value of the bearings sought to be imported comes to Rs. 1200 per piece, which clearly indicates that the bearings under import are not of the same specifications/quality as were used in the export product, as bearing is one of the inputs in the resultant product, and by any standards the value of the raw material cannot be more than the finished product itself. Since export product is only motors as mentioned above, it is logical to assume that the same types of the bearin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant has a proper DFIA. 5. According to the proviso, in respect of resultant product specified in paragraph 4.55.3 of the handbook of procedures of the Foreign Trade Policy, (FTP), the materials promoted in the authorization shall be of the same quality, technical characteristics and specifications as the materials used in the said resultant product. It is also provided that in respect of these resultant products, the exporter is required to give declaration with regard to the quality, technical characteristics and specifications of materials used in the shipping bill. Gemi Motors India Pvt. Ltd. from whom the appellant obtained the DFIA, had exported electric motors and obtained DFIA in respect of seven items such as aluminum sheets, alum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nditions prescribed in paragraph 4.55.3 is not applicable to them since what was exported was electric motor and what has been imported is bearings. On this ground alone, in the normal course the appeal could have been allowed. However, we proceed to examine the other contentions also. 7. The next contention is that the specification provided in the DFIA is only upto 50 mm bore in respect of bearings and appellants have imported several types of bearings whereas the export was only of one type. In this regard, we have to take note of the fact that when exports were made shipping bill was filed with Customs Authorities and in the shipping bill a declaration to the effect that it is under DFIA scheme would have been made. In such a situation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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