TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Importer not liable for duty fraud; Tribunal decision upheld</h1> <h3>COMMISSIONER OF CUSTOMS, KANDLA Versus M/s. INDIAN ACRYLICS LIMITED</h3> COMMISSIONER OF CUSTOMS, KANDLA Versus M/s. INDIAN ACRYLICS LIMITED - 2016 (336) E.L.T. 474 (Guj.) Issues:1. Whether the extended period of limitation can be invoked in a case involving fraudulently obtained DEPB scripsRs.2. Whether the importer is liable for duty, interest, and penalties due to fraud in obtaining DEPB scripsRs.3. Whether the importer can derive credit from a forged DEPB scripRs.4. Whether collusion or fraud on the part of the importer is relevant in the case of import under fake/fraudulent DEPB licenseRs.Analysis:Issue 1:The appeal under section 130 of the Customs Act, 1962 questions the Tribunal's order on whether the extended period of limitation can be invoked in a case where DEPB scrips were obtained fraudulently. The importer bought transferable DEPB scrips in 2000 which were originally issued fraudulently. The Commissioner of Customs proposed a demand for duty, interest, and penalties. The Tribunal held that the extended period of limitation could not be invoked in this case, leading to the rejection of the demand.Issue 2:The Tribunal's decision was based on the fact that the importer had availed credit on valid DEPB scrips issued by the DGFT authorities at the time of import. Even though the exporter manipulated the export document leading to cancellation of the DEPB scrips in 2004, the importer was not found to have colluded or willfully misrepresented facts. The Tribunal referred to a previous High Court decision stating that if a person is not party to fraud, the Revenue cannot benefit from the extended period of limitation. Thus, the demand for duty with interest was deemed barred by limitation, and penalties were not justified.Issue 3:Regarding the validity of DEPB scrips, the Tribunal emphasized that the importer had imported goods based on valid documents at the time of importation. The DEPB scrips were not forged during import, and the cancellation in 2004 did not retroactively affect the validity of the documents until they were set aside. The Tribunal highlighted that credit can only be derived from a valid DEPB, and the importer did not engage in fraud during the import process.Issue 4:The Tribunal's decision underscored that the importer's lack of involvement in the fraud related to the DEPB scrips led to the conclusion that the extended period of limitation could not be invoked. The Tribunal's reliance on factual findings and legal precedents demonstrated that the importer, not being party to the fraud, could not be held liable for duty, interest, and penalties beyond the statutory limitations. The judgment was based on the application of legal principles to the specific facts of the case, leading to the rejection of the appeal.In conclusion, the High Court upheld the Tribunal's decision, emphasizing that the findings were based on facts and did not raise any substantial questions of law warranting interference. The appeal was rejected, affirming the Tribunal's ruling on the issues related to the fraudulent DEPB scrips and the importer's liability for duty, interest, and penalties.
TaxTMI 