DFIA scheme conditions cannot be expanded by implied post-export restrictions; duty-free imports and related proceedings were not sustainable.

A transferable post-export DFIA scheme governed by notified Standard Input Output Norms cannot be burdened with implied actual-user restrictions or other impossible post-export conditions contrary to binding precedent. The asserted requirement to satisfy three essential conditions was rejected because it would be inconsistent with the scheme's beneficial and transferable character. On that basis, no direction could be issued to restrain DFIA imports, or to initiate departmental action, prosecution, or recovery proceedings against exporters, importers, or officials. The public interest challenge to the duty-free import regime therefore failed on the merits.

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Issues: Whether duty-free imports under the DFIA scheme could be restrained on the ground that the importer must satisfy the asserted three essential conditions, and whether departmental action, prosecution, or recovery proceedings could be directed against exporters, importers, or officials on that basis.

Analysis: The DFIA scheme under the Foreign Trade Policy operates on the basis of Standard Input Output Norms and is a post-export, transferable authorization scheme. The Court relied on prior High Court decisions holding that, in such a scheme, insisting on declarations in shipping bills or on actual-user type restrictions after exports have already been effected would be inconsistent with the scheme and would amount to imposing impossible or unwarranted conditions. The scheme was treated as beneficial in nature and capable of being implemented only in the manner recognised by the binding precedents then operating in the field.

Conclusion: The asserted three essential conditions were rejected, and no direction could be issued to prohibit DFIA imports, to initiate proceedings against officials, or to commence prosecution or recovery action against exporters or importers.

Final Conclusion: The public interest petition failed on the merits, and the challenge to the DFIA-based duty-free import regime was not accepted.

Ratio Decidendi: A transferable post-export DFIA scheme governed by notified Standard Input Output Norms cannot be subjected to an implied actual-user restriction or other impossible post-export conditions contrary to the scheme and binding precedent.

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