TMI Blog2017 (5) TMI 1455X X X X Extracts X X X X X X X X Extracts X X X X ..... an inquiry. I do not find that the failure of the Department to detect the forgery much earlier should extend the advantage to the appellants. The appellants cannot gain, in any manner, on the basis of a forged document. Even if it is considered, for argument sake, that the Department should have found out the fraudulent activity much earlier, I do not find that the same can be the basis for keeping the appellants totally out of picture with reference to non-payment of duty. The fact remains that the appellants produced a fraud document claiming duty payment. The department is well within their right to proceed and recover the central excise duty, not paid to the Government. Extended period of limitation - Held that: - since the docu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Appendix-II challans submitted by the appellants to the Central Excise Superintendent is not actually a genuine document of duty payment. The duty was not deposited in the bank and thereafter, by the bank to the Government Account. After conducting inquiry that the duty paid documents were in fact forged documents, the Revenue initiated action against these appellants to recover central excise duty, which has not been paid to the Government account, and to impose penalty. The cases were adjudicated by the Original Authority, who confirmed the duty demands and imposed equal amounts of penalty on the appellants in terms of Section 11 AC of the Central Excise Act, 1944 read with the provisions of Central Excise Rules, 2002. On appeal, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty in the said bank. The persons, who perpetuated the fraud, are being prosecuted by the Police and the matter is pending in the Metropolitian Magistrate Court, New Delhi. 5. When the Department has failed to verify the genuineness of the documents, before making clearance, the appellants cannot be charged with fraud, etc. Large number of similarly placed appellants have suffered due to fraud committed by Shri Sachin in collusion with bank employees. The appellants cannot be put to charge twice by demanding again duty. 6. The appellants also relies on the decision of the Tribunal, Hon ble High Court and Hon ble Supreme Court in support of their view that they cannot be put to duty demand in the above circumstances. These cases are dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Department should have found out the fraudulent activity much earlier, I do not find that the same can be the basis for keeping the appellants totally out of picture with reference to non-payment of duty. The appellants have submitted forged documents to the Department. The said documents have no recognition in law. It is clear that no clearance of excisable goods can be permitted based on the said illegal, non-recognised, forged documents. The appellants cannot take a plea that they have followed the procedure set out for payment of central excise duty. It is for them to follow the due procedure and to discharge duty with authorized bank. When such duty is paid to unauthorized person, it is not open to the appellant to plead innocence and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he admitted fact is that the goods are not eligible for the concession under the said notification as the certificates are not proper and genuine. They are bearing forged signature of the competent officer as such it is very clear that the goods are not eligible for any concession for the rate of duty based on such forged certificates. The contention of OCIL that the demand for duty arising out of such forged document is hit by time bar is not tenable. In fact, on being informed by the Investigating Officer about forgery and illicit nature of import, OCIL deposited the full duty liability before even the adjudication of the case. The concession on the goods cannot be claimed based on forged documents irrespective of who is responsible for s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Customs. The Hon ble Punjab Haryana High Court in the case of Peejay International - 2016 (340) ELT 625 (P H) was dealing with the DEPB scrips cancelled by the Department on finding that the seller had obtained it using forged documents. I note that none of these decided cases will come in aid of the appellant in the present case. Here, the duty paid documents are forged and not recognized in the eye of law. Such fraud will vitiate everything connected to that document. As such, the appellant s plea that the duty cannot be demanded from them is not legally sustainable. Following the ratio of the decision of the Hon ble Supreme Court in Aafloat Textiles (I)(P) Ltd. (supra) , I find that the demands have been rightly confirmed b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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