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TMI Blog2013 (6) TMI 637X X X X Extracts X X X X X X X X Extracts X X X X ..... 7/12/04 In this case, when the respondent had obtained the DEPB scrip from M/s Amber Exports on transfer and at the time of its use for duty free imports, he was not aware of the fraud committed by the seller/transferor M/s Amber Exports, it is the provisions of Section 29 of the Sales of Goods Act read with Section 19 and 19A of the Contract Act which would be applicable and the respondent would have to be treated as having good title to the DEPB scrip. See Aafloat Textiles reported (2009 (2) TMI 75 - SUPREME COURT), Collector vs. Sneha Sales Corporation reported [1998 (9) TMI 99 - SUPREME COURT OF INDIA] and Leader Valves Ltd. (2007 (3) TMI 166 - HIGH COURT, PUNJAB AND HARYANA). - Appeal No. 262 of 2008 - Final Order No. 56045/2013(P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that redemption fine can be demanded when the goods had been released against bond/undertaking, while in this case the goods had been unconditionally released without any bond or undertaking. Against this order of the Commissioner (Appeals), this appeal has been filed by the Revenue. 2. None appeared for the respondent. 3. Heard Shri Nagesh Pathak, learned DR, who pleaded that since the DEPB scrip against which the duty free import had been made by the respondent, had been obtained by fraud, the respondent cannot get the benefit of duty free import in as much as the DEPB scrip had been cancelled. He, therefore, pleaded that the impugned order setting aside the duty demand and confiscation of redemption fine is not sustainable. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble to this case, as in this case, what the Hon ble High Court has upheld is imposition of penalty on the Exporter M/s Golden Tools International under Foreign Trade (Development Regulation) Act, 1992 for obtaining DEPB scrip by producing forged documents. The question as to whether a bonafide transferee not having any knowledge about the DEPB scrip having been obtained by fraud, could make duty free imports against the DEPB scrip, prior to its cancellation by the DGFT, was not before the Hon ble High Court. This question was considered by Hon ble High Court in the case of CC vs. Leader Valves Ltd. (supra) and the ratio of that judgment is in favour of the respondent. 8. In the background of the facts that (a) DEPB scrip/license ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Act which would be applicable and the respondent would have to be treated as having good title to the DEPB scrip; (iv) it is the above principle which has been followed by the Apex Court in case of East India Commercial reported in 1983 (13) E.L.T. 1342 (S.C.) (para 35) and by the Tribunal in the case of Hico Enterprises vs. CC, Mumbai (supra) (para 30 and 31); and (v) the cases like this case, where a DEPB scrip actually issued by DGFT, though obtained by fraud by the Exporter, is used by a bonafide transferee who had no knowledge about the fraud committed by the Exporter, cannot be compared with the cases where the DEPB scrip had been forged/fabricated by a person and had not been issued at all by the DGFT and the forged/nones ..... X X X X Extracts X X X X X X X X Extracts X X X X
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