Gujarat HC ruled that starch slurry qualifies under SION entry E22, making it eligible for Duty Free Import Authorization. The decision benefits chemical and textile sectors.
Starch Slurry Eligible Under SION E22 for DFIA Benefit
The Gujarat High Court has held that starch slurry falls under Standard Input Output Norms (SION) entry E22, thereby qualifying for Duty Free Import Authorization (DFIA) benefits under the Foreign Trade Policy. The ruling resolves ambiguity affecting starch-based industries, particularly in textiles and paper manufacturing.
The dispute centered on classification of starch slurry as a processed form of maize or tapioca. The department denied DFIA, classifying it outside notified SION categories. The Court, relying on technical specifications and industrial usage, interpreted SION E22 broadly to include semi-liquid forms used as sizing agents.
This judgment clarifies eligibility for downstream industries using starch derivatives. Importers should revisit DFIA applications for similar products. The decision may prompt CBIC to issue clarificatory instructions on SION interpretation for semi-processed inputs.
Citations
- M/s. Navneet Starch v. DGFT (2026) Gujarat HC
