Fraudulent duty-free diversion defeats advance-licence exemption, enables extended recovery, and supports penalties for firms and active partners.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Fraudulent diversion of duty-free SEZ scrap into the DTA vitiates advance-licence exemption, permits recovery of customs and central excise duty with interest, and supports invocation of the extended limitation period. Non-existent buyers, forged, cancelled or suspended licence documentation, and cash-funded payment arrangements establish fraudulent availment where goods were neither received by stated recipients nor used to meet export obligations. Recovery proceedings for duty not levied or short-levied remain available despite prior assessment and clearance of bills of entry. DRI-issued show-cause notices and adjudication by the Commissioner of Customs are valid under the statutory jurisdictional position. Segregating and processing mixe.........