Where duty exemption was availed by using a Focus Market Scheme...

Where duty exemption was availed by using a Focus Market Scheme scrip later found to be fraudulently enhanced/forged, customs duty demand was held sustainable since exemption based on a forged scrip cannot extinguish statutory duty liability, notwithstanding the importer's claimed bona fide purchase and subsequent payment under protest. Accordingly, duty liability and allied confirmations in the impugned order were upheld. However, penalty under s.114AA of the Customs Act was set aside because the provision requires knowing or intentional use/making of a false document, and the record did not establish that the importer had knowledge of manipulation or participated in the fraud. - CESTAT