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Cus - Boric Acid imported for non-insecticidal purpose - in view of Sect 38 of Insecticides Act appellants are not required to obtain any permission from Govt - they are entitled for benefit of DFIA Scheme: CESTAT

By TIOL News Service

MUMBAI, FEB 26, 2014: THE appellant imported a consignment of Boric acid under DFIA scheme and claimed duty free benefits. As per the provisions of DGFT Notification no. 2 (RE-2006)/2004-2009 dated 07.04.2006 boric acid for non-insecticidal purpose falling under Chapter 2810 0020 is freely importable subject to production of an import permit issued by the Central Insecticide Board and Registration Committee under the Ministry of Agriculture.

As the appellant failed to produce such permission, therefore, goods were confiscated and were allowed to be redeemed on Redemption Fine and Payment of duty. Penalty of Rs. 2 lakhs was also imposed.

The said order was challenged by the importer and the Commissioner (Appeals) reduced the Redemption Fine and penalty but rest of the Adjudicating Authority's order was confirmed.

Aggrieved from the said order, the appellant is before the CESTAT.

It is submitted that Section 38 of the Insecticides Act, 1968 gives an exemption for import of such item for agricultural/non-insecticidal use. Admittedly, the appellant has imported these goods for non-insecticidal purpose. Therefore, the question of obtaining the permission from the Ministry of Agriculture does not arise. Accordingly, they have fulfilled the condition of DGFT Notification 2/06 dated 07.04.2006. It is further submitted that the condition No.7 of the said Notification has already been struck down by the Kerala High Court in the case of Maliakkal Industrial Enterprises. Therefore, they are entitled to import the goods duty free.

The Bench observed -

"6. As the condition no. 7 of the Notification 2/2006 has already been stuck down by the Hon'ble Kerala High Court; furthermore, in the Insecticides Act, 1968 provided exemption under for non-insecticidal purpose, therefore, the appellant are not required to obtain any permission from the Ministry of Agriculture. Accordingly, they are entitled for the benefit of Notification 2/2006 dated 07.04.2006 and entitled to get the benefit of the DFIA Scheme. Accordingly, impugned order is set aside…."

The appeal was allowed with consequential relief.

(See 2014-TIOL-274-CESTAT-MUM)


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