COMMISSIONER OF CUSTOMS (IMPORTS)BOMBAY vs M/S. HICO ENTERPRISES

The Supreme Court upheld the decision of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) regarding the liability of the transferee of a Value Based Advance License (VABAL). The Court clarified that under Section 28(1) and Section 111 of the Customs Act, 1962, the transferee cannot be compelled to prove fulfillment of export obligations by the original license holder. The appeal was dismissed as the show cause notice did not attribute any infraction to the transferee, affirming the Tribunal's conclusion that the original licensee holds the responsibility for compliance.