Customs duty upheld where DEPB scrip concessions obtained via forged documents and traded through intermediaries were cancelled

The HC upheld a demand for customs duty where import duty concessions were availed using DEPB scrips obtained by forged documents. The scrips had been traded through several intermediaries before being used; the Commissioner of Customs cancelled the scrips and disallowed the concession. Relying on binding authority, the court found that concessions obtained on forged documentation cannot be retained and refused to interfere with the order upholding the duty demand.

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Issues:
1. Appeal under section 130 of the Customs Act, 1962 against the order of the Customs Excise and Service Tax Appellate Tribunal regarding duty demand on imported goods against DEPB Scrips obtained through forged documents.

Analysis:
The appeal was filed against the order confirming the demand of duty on imported goods obtained against DEPB Scrips procured through forged bank certificates. The DEPB Scrips were canceled by the competent authority, leading to the confirmation of duty demand. The Tribunal upheld the Commissioner of Customs' decision that concessions based on forged DEPB Scrips cannot be retained.

In a previous order, the court considered similar issues and referred to various judgments, including those of the Supreme Court and High Courts, emphasizing that benefits obtained through forged documents cannot be allowed. The principle that a purchaser does not acquire a better title than the seller was highlighted, along with the duty charge under Section 12 of the Act, irrespective of any person's intention.

The Tribunal found that since the documents were forged and the firm involved in the transaction was untraceable, the appellant could not benefit from any exemptions. The appellant had acknowledged the forgery, and the Tribunal's decision to deny further opportunities was deemed appropriate. References were made to judgments by the Supreme Court and the High Court to support this decision.

Ultimately, the court dismissed the appeal, stating that there were no grounds to interfere with the order upholding the duty demand on goods obtained through DEPB Scrips acquired through forged documents. It was concluded that no substantial question of law arose in this matter, leading to the dismissal of the appeal.

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