TaxTMI 
TaxTMI 
2018 (8) TMI 1411
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....us reasons, upon which the present petition has been filed. 2. At the outset, brief facts may be noted; The petitioner is a Company registered under the Companies Act and is engaged in the business of import and trading in edible oils. The petitioner had placed an order with British Petroleum Singapore Pte. Limited at Singapore for 5000 Metric Tonnes of Biodiesel, which would be supplied as a blend containing not less than 30.1% and not more than 35.0% of Biodiesel meeting the Indian Biodiesel Specifications and not less than 65.0% and not more than 69.9% diesel meeting Bharat Stage IV Diesel Specifications. Such goods were shipped from Singapore on 04.06.2018 and arrived at Kandla Port in the middle of June 2018. On 15.06.2018 the petitio....
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.... Sl. No.453 of schedule III of Notification NO. 01/2017 - Integrated Tax (Rate), dated 28th June 2017 would be applicable." 4. The petitioner thereupon filed the present petition. 5. According to the petitioner, the imported material is Biodiesel, which is, as per the prevailing import policy free for import. The petitioner had, in fact, written to DGFT on 13.06.2018 seeking clarification in this respect. It was conveyed by DGFT on the same day that Biodiesel, as described under 38260000, is free for import. The petitioner points out that Chapter 38 of the Tariff ITC (HS) contains EXIM Code 38260000, which pertains to "Biodiesel and mixtures thereof, not containing or containing less than 70% by weight of petroleum oils or oils obtained f....
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....in not less than 65.0% and not more than 69.9% of Diesel meeting the Bharat Stage IV Diesel Specifications. British Petroleum Singapore Pte. Limited, which supplied the said product to the petitioner, also provided necessary Certificate in this respect. Once the product arrived in India, the petitioner also supplied a Certificate of the local Laboratory, which specified that the Biodiesel content in the product was 34.81%(V/V). In other words, the product, other than Biodiesel, be it HSD, was at any rate, less than 70%. 8. In this background, we may refer to the three objections of the Department for clearance of the goods, which are; (i) that Biodiesel is not free for import as per the current policy of the Government of India (ii) that p....
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....gnificant share in the energy basket. However, conventional or fossil fuel resources are limited, nonrenewable, polluting and therefore, need to be used prudently. On the other hand, renewable energy resources are indigenous, nonpolluting and virtually inexhaustible. India is endowed with abundant renewable energy resources. Therefore, their use should be encouraged in every possible way. This National Policy on Biofuels - 2018 builds on the achievement of the earlier National Policy on Biofuels and sets the new agenda consistent with the redefined role of emerging developments in the Renewable Sector." 10. Para 6.0 of this Policy pertains to Import and Export of Biofuels. Sub-para 6.1 thereof provides that indigenous production of Biofuel....
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....d export of which has been prohibited u/s.11 of the Customs Act and that all the provisions of that Act shall have effect accordingly. 12. It would, thus, prima facie appear that the promulgation of Foreign Trade Policy in terms of Section 5 of the Act would not be sufficient to change the category of a product from being freely importable to the import of which is restricted. Such restrictions are envisaged under sub-section 2 of Section 3 of the Act. No Notification under the said provision has been issued. Further, in the present case, the petitioner had sought a clarification from the Director General of Foreign Trade whether the import of the goods is free. The answer of the Director General of Foreign Trade, as noted, was in the affi....
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....onfirming the proportion of Biodiesel and HSD in the imported consignment. Fourthly, the Department has not pointed out any basis for the initiation of investigation into the composition of the fuel. From the affidavit in reply what can be culled out is that the starting point for such investigation is the above-noted complaint letter. It is nobody's case, at least as of now, that the fuel contains more than 70% HSD or conversely, less than 30% biofuel. We have already noted that the very definition of Biofuel is that it must have not more than 70% of weight of petroleum oil or oils obtained from bituminous minerals. This is not disputed by the Department. Under the circumstances, we would not prevent the Department from carrying out furthe....