Bona fide purchase of DEPB licence protects importer from duty demand and penalty on imports made under that licence.

A bona fide purchaser of a DEPB licence from the open market was held not liable to duty demand or penalty for imports made under that licence. The appellate finding was supported by existing precedent, and the legal position was treated as settled, leaving no infirmity in the relief granted to the respondent. On that basis, the appeal was rejected.

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Issues: Whether the respondent, being a bona fide purchaser of DEPB licence from the open market, was liable to duty demand or penalty in respect of imports made under such licence.

Analysis: The respondent's purchase of the DEPB licence in the open market was accepted as bona fide. The earlier appellate finding was supported by existing precedent, and the legal position was treated as settled. In that view, no infirmity was found in the order granting relief to the respondent.

Conclusion: The respondent was not liable to duty demand or penalty on the imports made under the DEPB licence, and the appeal was rejected.

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