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2018 (9) TMI 330 - HC - CustomsDFIA scrips - Subsequent cancellation of the licenses/scrips - assessee purchased the DFIA scrips and has availed exemption from customs duty - interpretation of statute - Section 28 of the Act - extended period of limitation. Held that:- The appellant steps into the shoes of the importer in the sense that they have purchased the advance licence, which was granted to the importer. If it is being that the licence obtained by the importer was obtained by fraud nothing further, remains to be done as fraud vitiates every solemn act and goes to the root of the matter and therefore, the assessee cannot be allowed to contend that on the date when they utilized the licence, it was not cancelled. Time Limitation - Held that:- The show cause notice has been issued invoking Section 28(1) of the Act, which is well within the period of six months from the date on which the offence was deducted and the licence was cancelled by the Joint Director General of Foreign Trade. Therefore, the power of the Customs Authority to initiate action shall at best commenced from the date on which the offence report is received by them and not earlier. Therefore, the contention raised by the assessee in this regard, is rejected. The correct legal position has been spelt out in the decision in Friends Trading Co. [2011 (2) TMI 382 - PUNJAB & HARYANA HIGH COURT], wherein also somewhat identical issue arose for consideration and the Court held that fraud or suppression continues, if document is not genuine and contrary interpretation defeating legislative intention will not enable perpetuation of fraud and a purchaser or successor of fraudulently obtained licence stands in the same position as the predecessor. The said decision squarely would apply to the case on hand, as the petitioner is a purchaser of licence, which was fraudulently obtained. Appeal dismissed - decided in favor of Revenue.
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