TaxTMI 
TaxTMI 
2026 (2) TMI 342
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.... 87429 of 2013, 87928 of 2013, 85315 of 2014, 85316 of 2014, 85490 of 2014, 85248 of 2018, 86464 of 2018, 89786 of 2014, 86785 of 2015, 87154 of 2015 - FINAL ORDER NO. A/85228-85240/2026<br>Customs<br>MR. S.K. MOHANTY, MEMBER (JUDICIAL) AND MR. M.M. PARTHIBAN, MEMBER (TECHNICAL) For the Appellant : Shri Akhilesh Kangsia, Shri Jeffry Cales, Shri Prakash Shah, Shri J. C. Patel For the Respondent : Shri L.B. D'Coasta, Authorized Representatives, Shri Deepak Sharma, Authorized Representatives, Shri Krishna Azad, Authorized Representatives ORDER PER: S.K. MOHANTY Briefly stated, the facts of the case are that the appellants in this case, have imported certain goods and cleared the same against transferable Duty Credit Sc....
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....sequent cancellation of the scrip/license cannot affect the prior import activity of such transferee. However, the aforesaid submission of the appellants did not find favour with the adjudicating authority/First Appellate Authority, who have held that a scrip/ license obtained by fraud by the original licensee is void from inception and therefore, import of goods by transferee of such scrip/license is not entitled to duty benefit thereunder. On that basis, the proposals made in the SCNs were confirmed in the respective impugned orders. Feeling aggrieved with the impugned orders, the appellants have preferred these appeals before the Tribunal. 2. Heard both sides and examined the case records. 3. The issue involved in the present appea....
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....id. In the case in hand, the appellants had purchased the scrips/licenses from the persons, who were recognized by the licensing authorities as the exporter of the goods and upon subjective verification, the same were issued in their favour by the competent authorities. Thus, under such circumstances, even if the said documents were obtained by the main beneficiary by adopting to the fraudulent means or practices, it cannot be questioned at the stage of the ultimate beneficiary, who had purchased such document duly issued by the competent authority and utilized the same for duty free importation of goods. 5. We find that the issue arising out of the present dispute is no more res integra, in view of the order passed by the Co-ordinate Be....
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....found to be forged one and it was found that the DEPB licenses/Scrips were not issued at all. A fraud was played and the exemption benefit was availed on such forged/fake DEPB licenses/Scripps. 9. In that view of the matter and on the principle that fraud vitiates everything and such forged/fake DEPB licenses/Scrips are void ab initio, it cannot be said that the Department acted illegally in invoking the extended period of limitation. In the facts and circumstances, the Department was absolutely justified in invoking the extended period of limitation." (emphasis supplied) 29. The judgment of the Supreme Court in Commissioner of Customs (Preventive) v. Aafloat Textiles (I) P. Ltd. [2009 (235) E.L.T. 587 (S.C.)] deals wit....
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....ucing fraudulent/fake export documents or bank documents, then during the validity of the licence/scrip the exemption cannot be denied and the goods cannot be confiscated. This would be so, even if the licence is cancelled by the licensing authority subsequently after the imports have been effected. What is relevant is a valid licence/DEPB issued by the licensing authority and presentation of the same at the time of import of the goods and at the time of filing the Bill of Entry. 32. The position would be totally different if the licence/DEPB scrip or TRAs have not been issued by the DGFT and the same have been found to be fake or forged. In such a situation, customs duty exemption would not be available either to the original lice....