2014 (1) TMI 1169

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....e Ministry. Items allowed for import under the said license were Flavours/Essential Oil. The Respondent was claiming saffron to be a flavouring agent for food items. 2. Revenue was of the view that the item imported is too expensive a material to be used in the manufacture of the goods exported and Revenue proposed to deny exemption under Notification 90/2004-Cus. An adjudication order issued denying such benefit was challenged by the Respondent before the Commissioner (Appeals). The Commissioner (Appeals), based on clarification issued by DGFT and other technical opinions, decided that the Respondent is eligible to import saffron under the impugned license and to claim the exemption under the notification. Aggrieved by the order of t....

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....duct. 7. The Counsel also submitted a letter addressed by Prof. K.D. Deodhar, Department of Chemistry, IIT Mumbai to the Deputy Commissioner of Customs, Customs House Mumbai clarifying that saffron is a natural colouring and flavouring material used as additives in culinary, bakery and confectionary items and sweets and he argues that it is obvious that the license in question can be used for importing saffron. He further points out that Customs Authorities in Mumbai had been allowing import of saffron against such licensees. 8. The Counsel also relies on para 2.2 of Circular No. 24/2002-Cus., dated 6-5-2002 issued by C.B.E. & C., which reads as under : "2.2 DFRC Scheme DFRC Scheme was first announced in Exim Policy 2000-....

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....t product as earlier. License issued under DFRC scheme are freely transferable as earlier. Other procedural requirements of DFRC Scheme as specified in DOR's earlier Circular Nos. 33/2000-Cus., dated 2-5-2000 [2000 (118) E.L.T. T27], 42/2000-Cus., dated 2-5-2000 [2000 (118) E.L.T. T20] and 59/2000-Cus., dated 11-5-2000 [2000 (119) E.L.T. T74] shall continue to be followed with the aforesaid modifications. Customs Notification No. 46/2002-Cus., dated 22-4-2002 has been issued to operationalise this Scheme." 9. Since the goods in question is not one of the items specified in Para 4.31 of the Hand Book of Procedures, the argument of Revenue that the goods imported should be of the same quality and Technical characteristic as the inputs....