2013 (9) TMI 30

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....ity by order F.No. Misc. 1(68)DRI/AM01/ECAOC;A/29 dt. 19.4.2002 cancelled all the DEPB scrips. Thereafter, a show cause notice dt. 9.9.2003 was issued for proposing to demand duty and penalty. The Commissioner by the impugned order confirmed the Customs duty of Rs.51,05,919/- and penalty of Rs.30 lakhs imposed under section 112 (a) of Customs Act amongst others. 2. The ld. advocate on behalf of the applicant fairly submits that on this issue there are divergent decisions and ultimately the Tribunal in the case of Commissioner of Customs, Amritsar Vs Patiala Castings Pvt. Ltd. - 2012 (283) ELT 269 (Tri.-Delhi) dismissed the appeal filed by Revenue on the identical issue. He further submits that if the DEPB scrip is itself forged, in that ....

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....ies. Subsequent to imports, the DEPB scrips were cancelled by the DGFT on the ground that the same had been obtained by M/s. Parks Industries fraudulently by producing forged bank certificate of realization of export proceeds. There was no allegation against M/s. Friends Trading Co. that they were aware of the fraud committed by the transferor M/s. Parks Industries. In this case Hon'ble Punjab & Haryana High Court while upholding the recovery of duty from M/s. Friends Trading Co. has distinguished the Apex Court's Judgments in case of East India Commercial v. Collector (supra) and Collector of Customs, Bombay v. Sneha Sales Corporation (supra) by relying upon its earlier judgment in case of M/s. Munjal Showa Ltd. v. CCE, Delhi reported in 2....

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....ase, where the DEPB scrip, being forged/fabricated, is ab initio void, the judgment of Apex Court in case of Aafloat Textile Industries reported in 2009 (235) E.L.T. 587 (S.C.) will apply and duty can be demanded even from the transferee who had made duty free imports against the forged scrip and for this purpose, the principle of caveat emptor being applicable, longer limitation period under proviso to Section 28(1) would be applicable, while in the latter case, where the DEPB scrip had been validly issued by the DGFT, but being obtained by fraud/mis-declaration on the part of the exporter, was subsequently cancelled, the judgment of the Apex Court in case of East India Commercial (supra) and Sneha Sales Corporation (supra) will apply and ....