Partly allowed
Ajay Paper Corporation v. Commissioner of Customs Export & Anr.
Delhi HCW.P.(C)/6209/2022
Case brief
AI extract
What is this about?
The Court held that an importer failing to verify the authenticity of transferred duty credit scrips cannot claim protection as a bona fide purchaser under the Transfer of Property Act. Penalties under Section 114A of the Customs Act, 1962, imposed for obtaining duty benefits through fraudulent reliance on manipulated records were upheld. Conversely, a separate penalty under Section 112 was set aside. The Court found that the non-production of original documents did not vitiate proceedings given overwhelming independent evidence.
What did the court decide?
The Appellant is not a bona fide purchaser. Proceedings upheld based on independent evidence. Penalty under Section 114A of the Customs Act, 1962 upheld; penalty under Section 112 set aside.