ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 15.09.2025
Gujarat High Court Ruled that the DEPB license was valid at the time of import
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.
The Gujarat High Court recently delivered a significant judgment in the case of Commissioner of Customs vs. Binani Cement Ltd., shedding light on the interplay between fraud, customs duty liability, and the extended period of limitation under Section 28 of the Customs Act, 1962. This case serves as an important precedent for importers, exporters, and legal professionals navigating the complexities of customs law.
Case Background
The dispute arose when M/s Beni Exports obtained a Duty Entitlement Pass Book (DEPB) license in 2000, valued at Rs. 94,56,252/-. Investigations revealed that the license was fraudulently obtained by manipulating export documents. Consequently, the Director General of Foreign Trade (DGFT) canceled the license on October 24, 2001. However, before the cancellation, M/s Beni Exports had transferred the license to Binani Cement Ltd., which used it to import goods exempted from customs duty under Notification No. 34/97-Cus dated April 7, 1997. The Commissioner of Customs argued that since the license was invalidated due to fraud, the imports made using the license were liable for customs duty. The department sought to recover the duty by invoking the extended limitation period under Section 28 of the Customs Act, which allows recovery within five years in cases involving collusion, willful misstatement, or suppression of facts.
Source: Gujarat High Court
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