CESTAT says Bona Fide Purchase Does Not Cure Smuggled Imports

Anuj John purchased a Yamaha R1 motorcycle in 2013 believing the import documents supplied to him were genuine. Investigation revealed that the Bill of Entry was fabricated, the RTO details were fictitious and no customs duty had ever been paid.

CESTAT held that the confiscation proceedings were within time because the fraud was discovered only in April 2013. 

While the appellant's bona fide conduct justified dropping the penalty, duty and interest remained payable and the redemption fine was reduced to ₹10,000.