DGFT-approved delogging can convert DEEC exports into non-DEEC exports, preserving exemption under Notification No. 97/95.

DGFT-approved delogging of a DEEC book changes the character of the exports to non-DEEC exports, so exemption under Notification No. 97/95 cannot be denied merely because the goods were initially exported under DEEC. The earlier appellate view treating the delogged exports as non-DEEC exports was upheld, and the departmental objection that delogging made no difference was rejected. The operative principle is that valid delogging with approval removes the DEEC character for exemption purposes.

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Issues: Whether the benefit of Notification No. 97/95 was admissible when the DEEC book had been delogged after obtaining no objection from DGFT, so that the exports were to be treated as non-DEEC exports.

Analysis: The DEEC book had been delogged with the approval of DGFT. On that basis, the exports were treated as non-DEEC exports. The earlier appellate finding accepting this position was found to be correct, and the later departmental objection that delogging made no difference was not accepted.

Conclusion: The benefit of Notification No. 97/95 was admissible to the assessee.

Ratio Decidendi: Where the DEEC book is duly delogged with DGFT approval, the exports cease to retain DEEC character and the exemption available to non-DEEC exports cannot be denied merely because the goods were originally exported under DEEC.

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