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. for importing gold and silver using forged Special Import Licenses (SILs). The Court ruled that the liability for duty arises from the use of invalid licenses, and while the goods were not confiscated due to their absence, penalties were imposed under Section 114A. The Court emphasized that the importer could not claim better title than the seller when the licenses were forged, but noted that the lack of evidence regarding the importer's knowledge of the forgery was significant in the CESTAT's limitation ruling.