ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 28.08.2025
CESTAT Delhi- DRI and Commissioner of Customs cannot declare DEPB scrips issued by DGFT as null and voidβ β β β β
This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
In a significant ruling, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has set aside penalties and duty demands imposed on 21 appellants, including importers, bank officials, and a chartered accountant, in a case involving Duty Entitlement Passbook (DEPB) scrips. β This judgment highlights critical legal principles and clarifies the scope of authority under the Customs Act, Foreign Trade (Development and Regulation) Act, and FEMA regulations.
Background of the Case
The Directorate of Revenue Intelligence (DRI) initiated investigations against exporters accused of misusing export promotion schemes, such as DEPB and drawback, by filing false declarations. β The DEPB scrips, issued by the Directorate General of Foreign Trade (DGFT), were allegedly obtained fraudulently and later sold to importers who used them to import goods. β The DRI concluded that these scrips were ab initio null and void, leading to demands for customs duty and penalties on importers, bank officials, and a chartered accountant.
Source: CESTAT Delhi
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