Forged DEPB scrips cannot confer duty-free import benefits; customs duty remains payable even if cancellation comes later.

Customs duty remains demandable where DEPB scrips enabling duty-free import were procured by forged bank certificates of export realisation and later cancelled by the competent authority. The article distinguishes valid licences or post-import breaches from a case where the very instrument of exemption is void ab initio: a forged document cannot confer legal entitlement, and prior use of the scrip does not cure the defect. On that basis, the duty-free concession was held unavailable in law and the customs demand was sustained.

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Issues: Whether customs duty could be demanded on imports made against DEPB scrips that were obtained by producing forged bank certificates and were subsequently cancelled by the competent authority.

Analysis: The imports were made against DEPB scrips that had been procured on the basis of forged certificates of export realization. The earlier authorities relied upon by the importer concerned valid licences or cases of post-import breach, which stood on a different footing. Where the very instrument enabling duty-free import is procured by forgery, the defect goes to the root of the entitlement and the concession cannot acquire legal validity merely because the scrip was used before cancellation. A forged document remains void and cannot support exemption from duty.

Conclusion: Customs duty was rightly demanded. The issue is decided against the importer and in favour of Revenue.

Final Conclusion: The duty-free benefit under the impugned DEPB scrips was unavailable in law, and the demand confirmed in the adjudication order was upheld.

Ratio Decidendi: A duty exemption or import concession obtained through forged documents is null and void and cannot validate duty-free import, even if cancellation of the instrument occurs later.

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