TaxTMI 
TaxTMI 
2025 (11) TMI 873
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....dated 25.05.2018, 06.07.2018 and 25.07.2018 passed by the Commissioner of Customs confirming the demand of duty and recovery of interest under section 28AA of the Customs Act, 1962 [the Customs Act] and penalty under section 114A of the Customs Act. 2. The appellant is a manufacturer of inter-lining for shirts. It imported raw materials for such inter-lining. The appellant purchases Duty Exemption Pass Book [DEPB] Licenses through broker. Intelligence was gathered by the department that forged Telegraphic Release Advice [TRAs] were produced for discharging import duty liability. Accordingly, three show cause notices were issued to the appellant resulting in three adjudication. The relevant findings in the impugned order relating to the f....
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....the duty of the broker to sell the TRAs. While they may have checked the scrip to be valid, no attempt was made to ascertain the validity of the TRA. Had they obtained the TRA through their own representatives, got it registered, the fake nature of scrips would have been detected at Petrapole or Ghojadanga as the scrip were not registered, since no exports had taken place at that end. It is important and distinguishable, as discussed above that in this case, the import was made possible through two instruments, one DEPB/VKGUY scrip, and second the fake TRA. While the scrip per se was not forged, though obtained on forged Export documents, the TRA definitely was. It makes it clear that the responsibility of obtaining TRA was that of the impo....
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.... importers are totally devoid of any wrongdoing in this duty evasion." (emphasis supplied) 3. Ms. Radhika Chandrashekar, learned counsel for the appellant submitted that the TRAs were not obtained by the appellant or the representative of the appellant but by a broker and, therefore, it cannot be said that the appellant was in any way responsible for the forged TRAs. Learned counsel also submitted that in such circumstances, the duty could not be confirmed nor interest could be levied or penalty imposed. 4. Shri M.K. Shukla, learned authorized representative appearing for the department, however, submitted that the issue involved in these appeals has been decided by a division bench of this Tribunal in M/s Mercedes Benz India Priva....
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....verifying on the DGFT website. They have also made payment to the brokers of license through banking channel/account payee cheques. Regarding obtaining of TRA with the transfer license, the appellants admitted that the TRAs were also made available to them with the transfer licenses but they were not aware that these TRAs were also manipulated. In such circumstances, they pleaded that being bona fide purchasers of the licenses, they should not be penalized for any lapse committed by the exporter. On the other hand, it is contention of the Department that the entire activities of export and TRA has been manipulated by the exporters. As these licenses have been cancelled or are in the process of cancellation, the license are void ab initio an....