TMI Blog2013 (9) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... of Customs, Amritsar Vs Patiala Castings Pvt. Ltd.(2012 (11) TMI 266 - CESTAT, NEW DELHI) wherein the decision of Friends Trading Co. Vs UOI (2008 (10) TMI 344 - PUNJAB & HARYANA HIGH COURT) was considered. Waiver of pre deposit of duty – pre deposit of duty and penalty along with interest waived – stay granted. - C/158/10 - - - Dated:- 5-3-2013 - P K Das And Mathew John, JJ. For the Appellant : Shri K Parthasarathy, Adv. For the Respondent : Shri KSVV Prasad, JC (AR) PER : P K Das The relevant facts of the case as revealed from the record that applicant imported duty-free materials under 8 DEPB scripts in December 2000. The applicant purchased the DEPB scrips from M/s. Exim International. Subsequently, it was found th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emand of duty on the goods was upheld and even extended period of limitation would apply. He submits that the decision of the Punjab Haryana High Court in the case of Friends Trading Co. (supra) was upheld by the Hon'ble Supreme Court as reported in 2012 (281) ELT A106 (SC). 4. After hearing both sides, and on perusal of the records, we find that the Tribunal in the case of Patiala Castings Pvt. Ltd. (supra) had considered the decision of the Hon'ble Punjab Haryana High Court judgement in Friends Trading Co. The relevant portion of the case of Patiala Castings Pvt. Ltd. (supra) are produced below:- "6. In case of Friends Trading Co. v. UOI reported in 2010 (254) E.L.T. 652 (P H), cited by the Revenue, DEPB scrips against which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial (supra), CC, Bombay v. Sneha Sales Corporation (supra) and UOI v. Sampat Raj Dugar reported in 1992 (58) E.L.T. 163 (S.C.), wherein it was held that even if a licence was obtained by fraud, this did not affect the right of a transferee unless the transferee had not acted bona fide, and various judgments of High Courts and Tribunal wherein the above mentioned judgments of the Apex Court have been followed, it has not discussed as to how these judgments are not applicable. 7. There is difference between a forged DEPB scrip, which is ab initio void, even if the same has been transferred on sale and a DEPB scrip actually issued by the DGFT, though on the basis of forged documents provided or false declaration made by the exporter, whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hts in the subject matter of the contract. Thus, when a person obtains some goods from another person by fraud and before the seller is able to avoid the contract, he disposes of the same to a bona fide third party, the seller can not recover the goods from the third party. Since as held by the Apex Court in the case of East India Commercial (supra), principles of law of contract apply to the issue of import licence, the above mentioned principle would apply to the present case also and unless it is proved that the respondent in this case, who obtained the licence on transfer/purchase basis from M/s. ATM International, had knowledge about licence having been obtained by M/s. ATM by fraud, the duty cannot be demanded from them, when at the t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
