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2019 (5) TMI 983 - AT - CustomsIllegal obtaining of duty credit license for various fraudulent export - duty free scrips - TRA Confirmation reports forged by utilising services of telephone department and by forging stamp of customs duty officers - recovery of customs duty with interest and penalty - HELD THAT:- The Department has taken up the matter for cancellation of this FPS license with DGFT by the DRI on 08.12.2016. However, it appears that the license has not been cancelled by DGFT as yet. In other words, the above FPS license is a genuine licence in the record of DGFT even as of now. In so far as the appellant is concerned they have purchased the license in question from M/s Nilesh International on 26/12/11 on payment through banking channel. As per record the appellant was not involved in the fraud. The contention of the Department that the appellant has obtained the said license without verifying the existence of M/s Nilesh International before purchase thereof is not sustainable on account of the fact that the various licences issued by the DGFT are being traded by the Broker as trading commodities which is permitted under DGFT policy. It would be practically impossible for any buyer to verify as to whether the person to whom the licence has been issued has been existing or otherwise by conducting enquiries. At the best what buyers could do is to verify the existence of license issued from DGFT. In case at hand, even now the license has not been cancelled by the DGFT in spite of specific request being made by the DRI. The appellant cannot be held responsible for payment of import duty and interest along with the imposition of penalty under the provisions of Customs Act as has been held in the impugned order. Invocation of Extended period for recovery of the Customs Duty - HELD THAT:- It is evident that the appellant has not suppressed any fact from the Department to the extent that the license which was submitted for clearance of import consignment is issued by the DGFT, although the claimed to have been obtained fraudulently by the transferee and utilised on 06/12/11 on ICD Patpargang. The Show Cause Notice has been issued in this case on 02/12/2016, that is after the lapse of normal period of raising demand under the provisions of Section 28 of the Customs Act 1962 - the demand is also time barred. Appeal allowed - decided in favor of appellant.
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