https://www.taxtmi.com/caselaws?id=753145 CESTAT New Delhi upheld customs duty demand and penalty against appellant who used fraudulent duty-free scrips. The appellant failed to verify genuineness of scrips before clearance and did not produce physical scrips to customs officer as required by Foreign Trade Policy and exemption notifications. Though appellant claimed bonafide purchase, the scrip was originally issued to another entity and had been tampered with. CESTAT applied caveat emptor principle, holding appellant responsible for verification failures. The court confirmed that exemption notification conditions must be construed strictly, with benefit of doubt favoring revenue. Penalty under section 114A was upheld along with extended limitation period invocation. Both appeals dismissed. en-us Wed, 22 May 2024 00:00:00 +0530 Mon, 27 May 2024 08:07:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753145 CESTAT New Delhi upheld customs duty demand and penalty against appellant who used fraudulent duty-free scrips. The appellant failed to verify genuineness of scrips before clearance and did not produce physical scrips to customs officer as required by Foreign Trade Policy and exemption notifications. Though appellant claimed bonafide purchase, the scrip was originally issued to another entity and had been tampered with. CESTAT applied caveat emptor principle, holding appellant responsible for verification failures. The court confirmed that exemption notification conditions must be construed strictly, with benefit of doubt favoring revenue. Penalty under section 114A was upheld along with extended limitation period invocation. Both appeals dismissed. Case-Laws Customs Wed, 22 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753145