2013 (1) TMI 34 - AT - Customs

Waiver of pre-deposit - Stay recovery - DEPB - Duty Entitlement Pass Book Scheme - Assessee purchase DEPB Licence - Seller procured the DEPB Licence by producing false documents - Seller accepted the duty liability before the Settlement Commission and paid the same - AO issue SCN demanding as the applicant is a purchaser of the said Advance Licence and made import of the goods,for demanding interest and for imposition of penalty - Held that - There is no record to show that the applicant had knowledge or linking of any fraud committed by Seller The assessee had made out a strong prima facie case for waiver of pre-deposit of interest and penalty. Waiver & Stay petition allowed.

Summary

The Appellate Tribunal CESTAT Mumbai granted waiver of pre-deposit of interest and penalty to the applicant, a purchaser of DEPB scrips from M/s Rajat Pharmachem Ltd. The Tribunal found that the applicant had no knowledge of any fraud committed by the seller. The requirement of pre-deposit of interest and penalty was waived, and recovery stayed during the appeal.