CESTAT held that while Customs authorities are competent to...

CESTAT held that while Customs authorities are competent to investigate and issue show cause notices concerning eligibility of exemption under N/N. 18/2015-Cus., the final determination of eligibility of Advance Authorisation benefits lies with DGFT. Since the core issue pertained to fulfilment of export obligation and permissible use of imported goods under the Foreign Trade Policy, CESTAT ruled that the impugned order passed by the adjudicating authority was premature in the absence of a prior, final decision by DGFT on the same issue. Accordingly, the impugned order was set aside and the matter remanded to the adjudicating authority to re-decide the show cause notice after DGFT concludes its adjudication. The appeal was disposed of by remand.