DTA entitlement and deemed export treatment under the Foreign Trade Policy cannot be reworked by excise authorities suo motu.

DTA entitlement fixed by the Development Commissioner could not be reworked suo motu by excise authorities. Clearances treated as deemed exports under Para 6.8(a) of the Foreign Trade Policy 2009-2014 were not to be excluded from the entitlement computation on the basis of a circular dealing with supplies under Para 6.9. In the absence of a prior reference to the Development Commissioner, the demand and denial of concessional duty were unsustainable. The proper course was to obtain clarification from the Development Commissioner before deciding whether proceedings should continue, and the matter was remanded for fresh action on that basis.

---

---

Issues: Whether the excise authorities could disregard the DTA entitlement fixed by the Development Commissioner and whether clearances treated as deemed exports under Para 6.8(a) of the Foreign Trade Policy 2009-2014 could be excluded while computing the appellant's entitlement.

Analysis: The DTA entitlement was held to be within the province of the Development Commissioner, and not for the excise authorities to rework suo motu. The circular relied on by the Revenue was found to relate to supplies under Para 6.9 of the Foreign Trade Policy 2009-2014 and not to clearances under Para 6.8(a). In the absence of a prior reference to the Development Commissioner, the demand and denial of concessional duty were held to be unsustainable. The proper course was to seek clarification from the Development Commissioner and then decide whether proceedings should continue.

Conclusion: The demand could not be sustained as originally confirmed, and the matter was sent back for fresh action after obtaining clarification from the Development Commissioner.

---