DEPB Certificates obtained based on Forged Bank Realization Certificates were caused to be used in Bill of Entry: CESTAT confirms Penalty [Read Order]

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi Bench confirmed penalty as the Duty Entitlement Pass Book (DEPB) certificates obtained based on the forged bank realization certificates were caused to be used in the bill of entry.

The appellant, Gurmeet Singh Kohli, is a trader of automobile parts and met one Rajat Gulati and through him got into the business of trading in DEPB licences for a commission. The Marine and Preventive Wing of the Customs commenced investigation into DEPB licences and found that the DEPB licences sold by the appellant were based on fabricated documents showing export of goods to Bangladesh through the Land Customs Station.

The only part of the order relevant to the appellant is the imposition of a penalty of Rs. 3 lakhs on him under section 114AA of the Customs Act for his omissions and commissions. The authorised representative for the Revenue submitted that the impugned order is correct and calls for no interference and there is no force in the appeal an also pointed out that since there is not even a prayer in this appeal nor has anyone appeared, the Tribunal cannot grant any relief.

The appellant on interrogation agreed that he had prepared/created forged Bank Realisation Certificates against exports and submitted them to DGFT and obtained DEPB licences and sold them

The Tribunal consisting of PV Subba Rao, Technical Member and Binu Tamta, Judicial Member observed that “It is undisputed that the appellant had sold these DEPB licences to M/s. Whirlpool India and these licences were obtained from Directorate General of Foreign Trade (DGFT) by submitting forged documents.”

“Evidently, the appellant has, by his role discussed above, caused fraudulently obtained DEPB certificates to be used in the Bills of Entry filed by the importer which, in our considered view, falls squarely within the scope of Section 114AA of the Customs Act” the Tribunal opined.

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