TaxTMI 
TaxTMI 
2026 (10) TMI 146
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....Bills of Entry dated 23.09.2024 were held to be in contravention of the Foreign Trade Policy and the relevant notifications issued by the Directorate General of Foreign Trade (DGFT). The goods were valued at Rs. 33,31,970/-. The petitioner was given an option to redeem the confiscated goods for the limited purpose of re-export, on payment of a redemption fine of Rs. 25,000/-. A penalty of Rs. 50,000/- was also imposed under Section 112(a) of the Customs Act, 1962. 2. The petitioner is engaged in the business of importing and manufacturing various types of apparel garments. In the course of its business, the petitioner placed an order with M/s. Suzho Innovtex Co., Ltd., China, for the supply of 100% Polyester Knitted Fabrics. The goods we....
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....gned order is liable to be set aside. 6. Per contra, Mr.Sai Srujan Tayi, learned Senior Standing Counsel for the respondents, submitted that the Special Advance Authorization permits import only of goods which are otherwise freely importable. According to him, the authorization does not permit the import of goods which are prohibited or restricted under the Foreign Trade Policy. He therefore submitted that Paragraph 4.04A cannot be relied upon by the petitioner to overcome the restriction imposed by the DGFT notifications. 7. It was accordingly submitted that the impugned order has been passed in accordance with the provisions of the Customs Act and the applicable Foreign Trade Policy and therefore does not warrant interference by thi....
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....condition that the imported inputs were not sold in the Domestic Tariff Area (DTA). 13. The respondents, however, contend that the petitioner cannot claim the benefit of the said notification, on the ground that the import of synthetic knitted fabrics below USD 3.50 per kilogram was subject to a restriction under the Foreign Trade Policy. According to the respondents, the existence of the Special Advance Authorization does not override such restriction. 14. The above contention cannot be accepted in the facts of the present case. Paragraph 4.04A of the Foreign Trade Policy specifically provides for duty-free import of fabrics under the Special Advance Authorization Scheme for manufacture and export of articles of apparel, clothing and....