India Cements Ltd Vs Commissioner of Customs (CESTAT Chennai)
DEPB benefit to innocent transferee importer not deniable as fraudulently obtained scrip not cancelled at time of import
CESTAT Chennai held that denial of DEPB scrip benefit to innocent transferee importers of fraudulently obtained licence by original licence holder not justifiable since licence was not cancelled by appropriate authority at the time of import of goods. Accordingly, order set aside and appeal allowed.
Facts- CEEAN Commerce (P) Ltd, Kolkata filed 399 Export Bills for ‘alloy steel forging’ under the DEPB scheme, declaring that the shipments were destined for Bangladesh. The goods were allegedly transported using 99 trucks, through Indian Land Customs Station, Ghojadangha, West Bengal. Investigations revealed that no goods were exported or transported, and the licenses obtained were fraudulent. Some of these licenses obtained by the ‘primary importer’ were purchased, as permissible by the EXIM Policy, and used by M/s India Cements Ltd. and Seshasayee Paper and Boards Ltd., the transferee importers for import of goods, as permissible by the EXIM Policy.
After investigation, a Show Cause Notice was issued to the appellants. After following due process, the Customs authorities confirmed the duty demanded along with interest. Penalties were also imposed u/s. 114A of the Customs Act, 1962, on the appellants. No redemption fines were imposed since the goods were not available for confiscation. Aggrieved by the order the appellants are before this Tribunal in appeal.
