2014 (5) TMI 559

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.... Ltd. in spite of notice). 2. Brief facts of the case are that the appellants made import of goods under DEPB scrips/advance licences.  The licences in question were purchased from the market.  The licences were procured by M/s. Sonal Impex Corporation.  The appellants got the goods cleared under the advance licences without payment of duty.  Subsequently, during investigation, it was found that Sonal Impex Corporation procured the licences by submitting forged and fabricated documents with the Directorate General of Foreign Trade.  When the matter was brought to the notice of DGFT, the licences were cancelled ab initio.  Show cause notices were issued to the present appellants demanding duty of customs, whi....

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....limitation as the imports were made under the valid advance licences at the time of import and there is no allegation of suppression against the appellants in the show cause notices. 4. The learned AR appearing on behalf of the Revenue submitted that this issue whether the importer who purchased the advance licence from the market, which is obtained by submitting forged documents, is liable to pay duty or not, is settled in favour of the Revenue by the Tribunal in the case of Friends Trading Co. vs. CC, Amritsar reported in 2006 (202) ELT 611 and the Hon'ble Punjab & Haryana High Court, after taking into consideration the earlier decision of the High Court in the case of CC vs. Leader Valves Ltd. (supra) now relied upon by the appellant,....

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.... of import and were cancelled subsequently.  We find that the Tribunal in the case of Friends Trading Co. (supra) relied upon by the Revenue, while dealing in similar situation, held that misrepresentation or fraud is falsification of account to obtain import licence where DEPB scrips were obtained by producing forged documents showing export realization, which is different from falsification of account.  The Tribunal also relied upon the decision of the Hon'ble Supreme Court in the case of New India Insurance Co. vs. Kamla reported in 2001 AIR (SC) 1419.  The Hon'ble Supreme Court held that what was originally a forgery would remain null and void forever and it would not acquire legal validity at any time by whatever process....