Calcutta HC quashed duty demand against bona fide DFIA licensee purchaser; fraud not imputable.
The Calcutta High Court quashed a customs duty, interest, and redemption fine imposed on a bona fide purchaser who acquired goods under a valid, uncancelled DFIA licence. The department had sought to shift liability due to the exporter’s separate fraudulent conduct.
The court ruled that an innocent buyer acting in good faith cannot be saddled with fiscal consequences arising from misconduct by the exporter. The DFIA scheme does not permit collateral recovery from downstream parties without independent wrongdoing.
This decision upholds transactional certainty. Legal advisors must document due diligence in verifying licence validity to protect clients from spurious claims in third-party fraud cases.