Forged DEPB scrips cannot justify full customs relief, though limited pre-deposit waiver may still be granted.

Customs duty relief based on DEPB scrips was not available where the scrips were later found to be forged, because exemption or benefit cannot be sustained on a forged document even if the importer believed it to be genuine. At the same time, the absence of access to the DGFT correspondence relied on by the Department, together with the rebuttable nature of the presumption of regularity in official proceedings, supported only limited prima facie relief. Full waiver of pre-deposit was therefore refused, and partial waiver was granted with a direction to deposit 50% of the duty demand.

---

---

Issues: Whether the appellants were entitled to complete waiver of pre-deposit and stay of recovery in a customs duty dispute arising from use of forged DEPB scrips.

Analysis: The imported goods had been cleared on the basis of DEPB scrips later found to be forged. In such circumstances, a person claiming exemption or benefit on the strength of a forged document cannot claim full relief merely on the basis of a bona fide belief about genuineness. At the same time, the appellants were not given access to the DGFT correspondence relied upon by the Department, and the presumption of regularity in official proceedings under the Evidence Act is rebuttable. Taking these factors together, the matter did not justify total waiver, but did warrant partial relief.

Conclusion: Full waiver of pre-deposit was declined, and the appellants were directed to deposit 50% of the duty amounts.

Final Conclusion: The stay applications were disposed of by granting only partial waiver of pre-deposit in respect of the customs duty demands.

Ratio Decidendi: Benefit or exemption claimed on the basis of a forged document cannot be sustained, but partial waiver of pre-deposit may still be granted where surrounding circumstances show a limited prima facie case and the assessee lacked access to the material relied upon by the Department.

---