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2014 (3) TMI 423 - AT - CustomsRedemption fine and penalty - Allegation that DEPB Scrip was obtained by fraud - The arguments on behalf of the Appellant are that they purchased the DEPB scrip in good faith against payment of consideration and utilized it under the bonafide belief that the license did not have any blemish. - Held that:- It is an established fact on record that there was no DEPB scrips in existence in the eyes of law for transfer thereof to the appellant for use against discharge of import duty by the appellant. In ICI India Limited v. CC (Port), Calcutta - [2004 (9) TMI 127 - HIGH COURT AT CALCUTTA] as affirmed by Apex Court it has been held that the DEPB scrip is a negotiable instrument and is available in the market. Anyone can purchase it from the market and avail of the credit out of it. But, ultimately if that is found to be forged, fake or not acquired lawfully nor legitimate, credit cannot be derived therefrom. It is also settled principle of common law that a purchaser does not acquire better title if transferor had no title or title is ab initio void. Appellant acquired non est, unlawful and illegitimate DEPB scrip from market without causing enquiry with the issuing authority thereof to avoid evil consequence of fraud. Since fraud was involved, in the eye of law such documents had no existence. Since the documents have been established to be forged or fake, obviously fraud was involved and that was sufficient to extend the period of limitation. - Decided against the assessee and in favor of revenue.
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