Gujarat HC rules starch slurry qualifies under SION entry E22, allowing exporters duty reimbursement under DFIA scheme.
Starch Slurry Qualifies for DFIA Benefit: Gujarat HC
The Gujarat High Court ruled that starch slurry is eligible for duty drawback and incentives under the Export Promotion Capital Goods (EPCG) and Duty Free Import Authorization (DFIA) schemes, specifically under Standard Input-Output Norms (SION) Entry E22. The decision resolves a long-pending dispute over the classification of semi-processed industrial starch.
The Revenue Department had denied the benefit, arguing that starch slurry was not a recognized industrial input. However, the Court accepted technical submissions showing its widespread use in textile sizing, paper manufacturing, and bio-ethanol production.
"The commercial reality and industrial usage must inform the interpretation of SION entries,"
the Court observed. It directed the granting of DFIA authorization subject to fulfillment of export obligations. This ruling benefits manufacturers in Gujarat and Tamil Nadu who process starch for export-linked industries.
