2026-VIL-1459-CESTAT-DEL-CU
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CUSTOMS CESTAT Cases

Customs Duty - Fraudulent DFIA Licenses - Liability of Bona Fide Purchaser - Appellant purchased transferable DFIA licenses. DRI investigation revealed that the licenses had been obtained on basis of fabricated export documents filed through fake exporters and no actual exports had taken place - Appellant claimed to be a bona fide purchaser and submitted that it had purchased the licenses through normal commercial channels for valuable consideration with payment made through banking channels - Whether an importer who purchases transferable DFIA licenses obtained on basis of fabricated exports is liable for customs duty and penalty for failure to exercise due diligence to verify authenticity and validity of licenses - HELD - In an earlier decision involving the same DRI investigation, the same fake export syndicate, the same fraudulent DFIA licenses and the same legal issue, this Tribunal held that though importers contended they were unaware that the licenses were manipulated or forged, such contention was not accepted. The Tribunal held that importers had not applied for issue of Telegraphic Release Advice from port of registration as required and had failed to ascertain veracity of such TRAs from port of registration and due diligence required was not exhibited or carried out - In present case, appellant made no verification from DGFT nor from Customs. It is obvious that no due diligence whatsoever was exercised by appellant while purchasing the DFIA licenses. Appellant merely relied upon transfer of licenses without verifying authenticity of exports or validity of underlying documents – The duty demand and penalty are both justified and sustainable. Impugned Order-in-Original is upheld and the appeal is dismissed
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