2006 (4) TMI 315

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.... were cleared without payment of duty. Subsequently, it was found that DEPB Scrip were obtained by producing forged bank certificate of export and realization issued by various banks, and therefore, DEPB Scrips were cancelled by the competent authority. In pursuance cancellation of DEPB Scrip demand of duty was confirmed after issuance of show cause notice. 3. Facts of the case are that M/s. Parker Industries after producing the relevant evidence before the competent authority obtained Transferable DEPB Scrips which were first transferred to one M/s. Shyam International. M/s. Shyam International transferred the same to M/s. Vivek Impex Pvt. Ltd. and the present appellants purchased the DEPB Scrip from M/s. Vivek Impex Pvt. Ltd. Subs....

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....ion of licence the importer is entitled for the benefit of licence and no Customs duty can be demanded. The appeal filed by the Revenue was dismissed by the Hon'ble Supreme Court. The contention is that this decision is subsequently followed in the case of C.C., Bombay v. Sneha Sales Corporation, reported in 2000 (121) E.L.T. 577 (S.C.). In this decision it was held that import made under a valid licence cannot be subjected to levy of Customs duty. 5. The contention of the Revenue is that M/s. Parker Industries produced copies of shipping bill along with bank certificate of export and realization (BC&R) for getting transferable DEPB Scrips. The same were issued by the DGFT. Subsequently investigation was conducted by the bank author....

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....crips. 6. In the present case admitted facts are that M/s. Parker Industries obtained DEPB Scrips by producing forged bank certificate of export and realization in respect of goods exported by them. Inquiry was conducted from the banks which shows that such certificate was not issued by the bank. DEPB Scrips were purchased by the appellants and was used for import without payment of duty. Subsequent to the import of goods DEPB Scrips were cancelled by the DGFT. The question before us is whether duty is demandable when DEPB Scrips were obtained by producing forged documents and subsequently the same cancelled by the competent authority. Reliance of the appellants is only on the Supreme Court's decision in the case of East India Comme....