Commnr. Of Customs(Preventive) vs M/S. Aafloat Textiles (I) P.Ltd.&Ors.;

The Supreme Court upheld the CESTAT's decision regarding the Customs Act, 1962, specifically under Section 28 and Section 28AB, confirming the duty demand of Rs.6,69,40,149 on M/s Aafloat Textiles (India) Ltd. The Court ruled that the Special Import License (SIL) used for importing gold and silver was forged, thus invalidating the exemption under Notification No.117/94-Cus. However, the Court agreed with the CESTAT's finding that there was insufficient evidence to prove the importer's knowledge of the SIL's forgery, leading to a dismissal of the penalty imposed on the importer. The outcome favored the importer on the grounds of limitation and lack of knowledge.