Transferable DFIA eligibility turns on matching description and quantity, not ITC classification mismatch or an implied actual user condition.

A transferable DFIA permits duty-free import where the imported goods conform to the description and quantity specified in the authorisation and the relevant SION. On that basis, inshell walnut was treated as eligible for clearance against a DFIA issued for biscuit exports because technical material and prior rulings supported its fit with the relevant food flavouring and dietary fibre descriptions. The exemption could not be denied merely due to an ITC (HS) classification mismatch or because no separate actual user condition was shown. The operative effect is that DFIA benefit turns on compliance with the authorisation's description and quantity, not on those additional objections.

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Issues: Whether inshell walnut was entitled to duty-free clearance under the transferable DFIA issued against export of biscuits, and whether mismatch of ITC (HS) classification or absence of an actual user condition could deny the exemption.

Analysis: The DFIA scheme and the relevant SION E-5 permitted import of inputs by description and quantity. The imported inshell walnut was found, on the technical material and prior Tribunal and High Court rulings relied upon, to fall within the descriptions of relevant food flavour/flavouring agent/flavour improvers and dietary fibre. The Tribunal also held that, in a post-export DFIA scheme, once transferability is endorsed, eligibility depends on whether the imported goods match the description and quantity in the DFIA within the CIF value, and not on the ITC (HS) code or a separately implied actual user condition.

Conclusion: The denial of DFIA benefit was not justified, and the importer was entitled to clear the inshell walnut duty-free under the transferable DFIA.

Ratio Decidendi: Under a transferable DFIA, exemption cannot be denied where the imported goods conform to the description and quantity specified in the authorisation and SION, merely because of an ITC (HS) mismatch or absence of an actual user condition.

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