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Government of India
Ministry of Finance, Department of Revenue
Drawback Division
Circular No. 49/2016-Cus.
New Delhi, 27th October, 2016
To
Principal Chief Commissioners / Chief Commissioners
Principal Directors General / Directors General
Principal Commissioners / Commissioners
(All under CBEC)
Sub: Transferability of goods imported/procured by debiting duty in
SFIS scrips– reg.
The undersigned is directed to say that transferability of goods
imported/procured by debiting duty in SFIS scrips was considered by the Board in
the context of reconciling the Department of Commerce
Notification No.
30/2009-2014 dated 1.8.2013 that amended FTP 2009-14 to provide that goods
imported/procured under SFIS can be alienated on completion of 3 years from the
date of import/procurement, the judgment dated 23.5.2016 of Hon’ble Delhi High
Court in Writ Petition (C) No. 1809/2016 in the matter of Greatship (India) Ltd.
and the Notification nos. 92/2004-Cus and 91/2009-Cus or 34/2006-CE. The Board
has also consulted with the DGFT. It is clarified that –
(a) The goods imported/procured utilizing SFIS Scrip issued in terms of FTP
2009-14 may be sold/transferred on completion of 3 years from the date of
clearance of import/ procurement in terms of the Department of Commerce
notification no. 30 dated 1.8.2013.
(b) In the light of the Hon’ble High Court’s order and absence of specific
amendment by Dept. of Commerce to the FTP 2004-09, requests for sale/transfer of
goods imported/procured utilizing SFIS scrip issued in terms of FTP 2004-09
shall be considered by DGFT in terms of para 2.5 of FTP 2004-09 on merits
keeping in view the spirit of the Hon’ble High Court’s order to the effect that
transferability of goods that have completed 3 years is not deniable only on the
ground that imports were in terms of the FTP 2004-09.
(c) In view of DGFT conveying interpretation under para 2.3 of FTP
2004-09/2009-14 that the provision of transferability after 3 years is not
applicable to consumables (including food items and alcoholic beverages) since
such consumables are meant to be consumed in the course of day to day business
of the applicant, such consumables are non-transferable even after 3 years.
Hence these shall be exception to (a) and (b) above.
2. DGFT would also consider, on merits under para 2.5 of FTP 2004-09/ 2009-14
requests for export sale of goods any time after import/procurement, subject to
such export being without claim for any export incentive, rebate, refund,
drawback and/or re-credit of incentive and the bringing back into India being
treated as a fresh import.
3. Suitable public notice should be issued for guidance of trade.
Yours faithfully,
(Sukhbir Singh Ahuja)
OSD(DBK)
Tel: 23341480
F. No. 605/17/2013-DBK
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