Page 135 - ELT_3rd_1st May 2020_Vol 372_Part

2020 ] RAJHANS IMPEX PVT. LTD. v. UNION OF INDIA 357

sumed/utilised to obtain export product, may also be allowed. DGFT, by
means of Public Notice, may exclude any product(s) from purview of Ad-
vance Authorisation.
Duty free import of mandatory spares upto 10% of CIF valuation of Au-
thorisation which are required to be exported/supplied with resultant
product are allowed under Advance Authorisation. Advance Authorisa-
tions are issued for inputs and export items given under SION. These can
also be issued on the basis of Ad hoc norms or self-declared norms as per
para 4.7 of HEP.
Advance Authorisation can be issued either to a manufacturer exporter or a
merchant exporter tied to supporting manufacturer(s). However, advance
authorisation under paragraph 4.7A of HBP. V1 (for pharmaceutical prod-
ucts manufactured through Non-Infringing (NI) process) shall be issued to
Manufacturer exporter only.
Advance Authorisation shall be issued for :
(i) Physical exports (including exports to SEZ); and/or
(ii) Intermediate supplies; and/or
(iii) Supply of goods to the categories mentioned in paragraph
8.2(b), (c), (d), (e), (f), (g), (I) and (j) of FTP;
(iv) Supply of ‘stores’ on board of foreign going vessel/aircraft
subject to condition that there is specific SION in respect of
item(s) supplied.
In addition, in respect of supply of goods to specified projects mentioned in
paragraph 8.2(d), (e), (f), (g) and (j) of FTP, an Advance Authorization can
also be availed by sub-contractor to such project provided name of sub-
contractor(s) appears in main contract.
Such Authorization can also be issued for supplies made to United Nations
Organisations or under Aid Programme of the United Nations or other
multilateral agencies and which are paid for in free foreign exchange.
However, Advance Authorization for import of raw sugar, can be issued ei-
ther to a manufacturer exporter or merchant exporter tied to supporting
manufacturer(s). Exports can also be made by procurement of white sugar
from any other factory(ies). This provision shall be applicable for exports
from 17-2-2009.”
19.1 Further, Chapter 4 of the Hand Book also provides relating to the
duty exemption/remission scheme. Para 4.12 reads as under :-
“4.12 Exports in Anticipation of Authorisation
Exports/supplies made from the date of EDI generated file number for an
Advance Authorisation, may be accepted towards discharge of EO. Ship-
ping/Supply document(s) should be endorsed with File Number or Au-
thorisation Number to establish co-relation of exports/supplies with Au-
thorisation issued. The requirement of endorsement of file number or au-
thorisation number on the shipping bill would be dispensed with once the
EDI Data Transmission System for the shipments becomes operational.
If application is approved, authorisation shall be issued based on in-
put/output norms in force on the date of receipt of application by RA in
proportion to provisional exports/supplies already made till any amend-
ment in norms is notified. For remaining exports, Policy/Procedures in
force on authorisation issue date shall be applicable.
EXCISE LAW TIMES  1st May 2020  135