Customs Tribunal Rules Imported Engines Under DFIA License Need Not Match Export Use When Authorization Lacks Specific Restrictions.

CESTAT allowed appeal concerning disputed classification of imported internal combustion engines under transferrable DFIA license. Per N/N. 98/2009-Cus, customs duty exemption requires only that imported materials match authorization's description, value, and quantity. While export item aligned with SION Category C969, the authorization contained no explicit import restrictions or category specifications. CBEC Circular 46/2007 confirms correlation between inputs and exports needed only for specific products under para 4.55.3 of Handbook. Tribunal held appellant not required to correlate imports with original licensee's exports, as authorization language imposed no restrictions limiting engine imports to specific export-related uses. Impugned order set aside. .....

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