2025 (11) TMI 1370

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....demand has been confirmed, the reason for filing the appeal is that the demand should have been confirmed against the subsequent purchasers of the scrips and not the respondent who had obtained the scrips from the department. 2. It transpires from the records that the respondent had exported CD ROMs under DEPB scrips. The demand proposed in the show cause notice has been confirmed against the respondent. According to the department it should have been confirmed against the subsequent purchasers of the DEPB scrips and not from the respondent. 3. For claiming such a relief, it was imperative for the department to have impleaded the subsequent purchasers of scrips as respondents in this appeal, but they have not been impleaded. 4. It ....

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....ld that a licence/scrip obtained by fraud is not void ab-initio and is merely voidable. The concept that fraud vitiates everything would not be applicable if the licence/scrip had been obtained for valuable consideration without any notice of fraud having being committed by the original licencee/scrip holder while obtaining licence/scrip. The decisions also hold that cancellation of the scrips after the imports had been made on the basis of the scrips would not have any impact on the import as at that point of time the scrips were valid. .... 31. What, therefore, transpires from the aforesaid decisions is that wherever the licensing authority has issued the licence/DEPB scrip on the basis of which the exemption is sought f....