2016 (12) TMI 705

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....uty free by availing Notfn No.45/2002-Cus. dt. 22.04.2002 which provides for duty free imports of raw materials against DEPB credit earned by any exporter and issued with DEPB by the DGFT under DEPB scheme in terms of the provisions of EXIM Policy 2002-2007.Their associated firms are M/s.K.T.V. Oil Mills, M/s.Crystal Traders, M/s.Jupiter Trading Corporation.  It was the case of the Revenue that appellants had imported RBD Palmolein against fake licences purchased from one M/s.Jyoti Enterprises and M/s.Paras International, through a broker from M/s.R. Somanathan & Co.   The appellants cleared the goods without payment of duty by availing DEPB credit under six fake and forged DEPB licences and TRAs and wrongly availed exemption....

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....ugh the brokers in Tuticorin viz. Somanathan & Co.; that the licence was treated as a valid licence and the goods were cleared against the same; it is a case of forged DEPB licences which were procured by M/s. R. Somanathan & Co. and they have not committed any illegality or fraud. When there is no allegation in the SCN that the importer had knowledge or reason to believe that the licence purchased from the broker was false or forged, the extended period of limitation is not attached against the noticee. 3.  Ld. counsel for the appellants submitted that the authorities merely relied on the statements and based on presumptions and assumptions. Mere engagement of broker to obtain TRAs cannot be conclusive evidence that appellant indulge....

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....through the records and have considered the submissions of both sides. The issue before us is as to whether the clearance of imported goods by utilization of fake/forged DEPB licences are in order and whether extended period of duty demand is sustainable and if both these are upheld, whether imposition of penalty is in order. 6.  We find that the issue is as to whether clearance of goods by utilizing fake/forged DEPB licences now well settled by the judgement of the Hon'ble Supreme Court in the case of CC Vs Aafloat Textiles (I) P.Ltd. - 2009 (235) ELT 587 (SC).  We also note from the very same Commissionerate another appellant viz. M/s.DCW Ltd. has contested this issue and vide Final Order No.41743/2015 dt. 11.6.2015, the Ho....