Concessional duty on DTA clearances must follow Development Commissioner permissions, with eligibility reworked on remand.

Concessional duty on DTA clearances by a 100% EOU had to be assessed strictly by reference to the permissions issued by the Development Commissioner. The Foreign Trade Policy framework and the Letter of Permission operated within the limits fixed for the assessee, and the products and value limits varied across the relevant periods. Because the method used in the impugned orders did not match those specific permissions, the entitlement under Notification No. 23/2003-CE required fresh determination on that basis. The impugned orders were set aside and the matter was remanded for reconsideration.

---

---

Issues: Whether the entitlement to concessional duty on DTA clearances by a 100% EOU had to be determined strictly in accordance with the permissions granted by the Development Commissioner.

Analysis: The permission for DTA sale under para 6.8 of the Foreign Trade Policy 2009-14 operates within the limits fixed by the Development Commissioner. The assessee's LOP and the successive DTA sale permissions showed that the products and value limits were not uniform across the periods in dispute. The method adopted in the impugned orders for computing eligibility to Notification No. 23/2003-CE did not accord with the specific permissions granted for DTA sale, and the entitlement had to be examined only with reference to those permissions.

Conclusion: The determination of concessional duty was required to be redone in accordance with the permissions issued by the Development Commissioner, and the impugned orders were set aside with remand for fresh decision.

---