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TMI Blog2017 (4) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... nalties of Rs. 25,00,000/- is the culpability of the imports and importers, for utilization of duty exemption scrips that are claimed to have been legally purchased but which, nevertheless, are established as having been obtained by the transferors through fraud. 2. Briefly, the facts are that M/s Apar Industries Limited presented DEPB scrip no. 03626552 dated 26th October 1998, 03629335 dated 5th November 1998 and 0362863 dated 23rd October 1998 for clearance of goods against which bill of entry no. 5384 dated 11/11/1998, 7866 dated 20/10/1998, 6206 dated 15/10/1998 and 844 dated 23/10/1998 had been assessed to 'nil' basic customs duty in terms of exemption notification no. 34/97-Cus dated 7th April 1997. It has been established t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w attention to the decisions in Friends Trading Company v. Commissioner of Customs, Amritsar [2006 (202) ELT 611 (Tri. Del.)], Friends Trading Company v. Union of India [2010 (254) ELT 652 (P&H) & 2011 (267) ELT 33 (P&H)], APAR Ltd v. Commissioner of Customs (Export), Mumbai [2012 (276) ELT 534 (Tri. -Mumbai)], JM Tex P Ltd v. Commissioner of Customs (Export Promotion) [Order no. A/2156-2160/13/CSTB/Cl dated 17th October 2013] and Sun Chemicals & Anr v. Commissioner of Customs, Mumbai [Order no. A/93181-181/16/CB dated 17th October 2016]. 5. Having heard the rival contentions and perused the records, we find ourselves placed in a dilemma. Based on precedent decisions, the constituents of this bench are on record that duty liability and det ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s from market without being an original acquirer, as an abundant caution, to avoid evil consequence of fraudulently obtained scrips, could have safeguarded its interest causing enquiry from JDGFT as to genuineness of the scrips. But that was not done. The appellant failed to acquire no title over the scrips but became beneficiary of ill got scrips. Notificational benefit was availed at the cost of public exchequer which is required to be surrendered for the undue gain made. Bona fides was not established by the appellant failing to cause enquiry from JDGFT. When such bona fide is not established the appellant shall not avail the benefit of the ratio laid down by Hon'ble High Court of Punjab & Haryana in the case of CC v. Leader Valves L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any remedy. Even if case of criminal liability or penalty may stand on different footing, purchaser or successor of fraudulently obtained DEPB stands in the same position as his predecessor. If the extended period of limitation could be invoked against the original holder of fraudulent or forged DEPB, the same could be invoked against successor or purchaser. The judgments relied upon on behalf of the petitioner are distinguishable. The matter is covered by view taken by this Court earlier which has been followed by the Tribunal. Thus, we are unable to hold that any substantial question of law arises. 10. The appeal is dismissed.' 7. With the Hon'ble Supreme Court upholding the duty liability in these circumstances, we are merely conce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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