CESTAT Chennai upholds penalty for fake DEPB license transfer, applicant to deposit Rs. 2 lakhs in 6 weeks The Appellate Tribunal CESTAT Chennai ruled that the applicant, accused of transferring fake DEPB licenses without knowledge, failed to establish a prima ...
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CESTAT Chennai upholds penalty for fake DEPB license transfer, applicant to deposit Rs. 2 lakhs in 6 weeks
The Appellate Tribunal CESTAT Chennai ruled that the applicant, accused of transferring fake DEPB licenses without knowledge, failed to establish a prima facie case for waiving the penalty. The tribunal upheld the penalty of Rs. 8 lakhs imposed by the original authority in each case, directing the applicant to deposit Rs. 2,00,000/- within six weeks for each application to comply with the ruling. Compliance reporting was mandated by a specified date to ensure adherence to the deposit requirement within the given timeframe.
Issues Involved: Common issue of fake DEPB licenses transfer and imposition of penalty.
Analysis: The judgment by the Appellate Tribunal CESTAT Chennai involved multiple stay applications related to the transfer of fake Duty Entitlement Passbook (DEPB) licenses. The applicant, acting as a broker, was alleged to have transferred these fake licenses to another party, resulting in a penalty of Rs. 8 lakhs imposed by the original authority in each case. The applicant claimed innocence, stating they had no knowledge of the fake licenses and were merely following regular business practices. It was noted that the show-cause notice did not specifically mention this allegation. The applicant did admit to receiving a commission of 0.5% per transaction.
During the investigation, it was confirmed that the Telegraphic Release Advice (TRAs) and DEPB licenses were indeed in the names of other individuals, supporting the claim of fake transactions. The tribunal, after hearing both sides, acknowledged the absence of dispute regarding the fake DEPB license transactions. However, the issue of the applicant's knowledge or lack thereof was deemed relevant for the main appeals hearing. Consequently, the tribunal ruled that the applicant had not established a prima facie case for the complete waiver of the penalty amount. As a result, the applicant was directed to deposit Rs. 2,00,000/- (Rupees two lakhs) in each case within six weeks for each application.
The judgment concluded with a directive for compliance reporting by a specified date, emphasizing the need for the applicant to adhere to the deposit requirement within the stipulated timeframe.
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