2025-VIL-731-CESTAT-MUM-CU
  1. Home
  2. 2025-VIL-731-CESTAT-MUM-CU

CUSTOMS CESTAT Cases

Customs - Duty Exemption Pass Book Scheme (DEPB) scrips, Forged documents, duty liability – Appellant imported goods under the DEPB Scheme and availed customs duty exemption. The DEPB scrips used by the appellant were later found to have been obtained by the original holders on the basis of forged documents - Whether the appellant, being a bona fide purchaser of the DEPB scrips, can be held liable to pay Customs duty when the scrips were later found to have been obtained by fraud by the original holders - HELD - The Supreme Court and various High Courts have held that a license/scrip obtained by fraud is not void ab-initio and is merely voidable. As long as the license/scrip is valid at the time of import, the importer cannot be denied the exemption benefit even if the license/scrip is later cancelled due to fraud by the original holder. The importer, being a bona fide purchaser for value without notice, should not be penalized for the fraud committed by the original holder. The exemption benefit cannot be denied to the appellant merely because the DEPB scrips were later cancelled due to fraud by the original holders, as the scrips were valid at the time of import – The impugned order is set aside and the appeal is allowed - Whether the extended period of limitation under the proviso to Section 28(1) of the Customs Act was properly invoked in the present case. HELD - The show cause notice and the impugned order do not mention any reasons for invoking the extended period of limitation of 5 years under the proviso to Section 28(1). The normal period of limitation under Section 28(1) is 6 months, and the extended period can only be invoked if the short-levy is due to "collusion or any wilful mis-statement or suppression of facts by the importer or the exporter". Since the department failed to properly invoke the extended period, the entire demand confirmed in the impugned order deserves to be set aside.
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Biweekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

Credit Notes ITC Reversal in IMS…
By Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?