Post-export DFIA transferability requires proper consideration of export completion and proceeds realisation, not the pre-export actual user condition.

The Policy Relaxation Committee treated the request for transferability of Duty Free Import Authorisation as a pre-export DFIA matter and applied the actual user condition. The representation, however, concerned a post-export DFIA, where export completion and realisation of proceeds were the relevant factors. Because the Committee proceeded on the wrong footing and did not examine the real issue raised, its decision could not stand. The writ petition succeeded, the impugned decision was set aside, and the matter was remitted for fresh consideration as a post-export DFIA request.

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Issues: Whether the Policy Relaxation Committee correctly treated the request for transferability of Duty Free Import Authorisation as one concerning pre-export DFIA and applied the actual user condition, instead of examining it as a post-export DFIA case.

Analysis: The Committee's decision proceeded on the basis that the authorization was governed by the actual user condition applicable to pre-export DFIA. The grievance before it, however, was that the authorization was sought in the post-export context, where export completion and realization of proceeds govern the request for transferability. By addressing the matter on an incorrect footing, the Committee failed to consider the real issue raised in the representation.

Conclusion: The Committee's decision could not stand and the matter required reconsideration treating the authorization as post-export DFIA.

Final Conclusion: The writ petition succeeded, the impugned decision was set aside, and the matter was remitted for fresh decision by the Policy Relaxation Committee.

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