Corroboration of co-noticee statements is essential before fastening liability for alleged abetment of illegal export.

An inculpatory statement recorded under Section 108 of the Customs Act, 1962 is admissible and may be used against a co-noticee, but liability for abetment of illegal export cannot rest on that statement alone unless the incriminating assertions are supported by reasonably verifiable corroborative facts or circumstances. On the record described, the alleged supply, transport, payment trail and other linking material were not established, and the appellant's denials remained consistent. Reliance on the co-noticee's uncorroborated statement was therefore unsustainable, and the penalty and finding of liability were set aside.

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Issues: Whether the inculpatory statement of a co-noticee could be relied upon against the appellant without corroboration, and whether the penalty imposed on the appellant for alleged abetment of illegal export was sustainable.

Analysis: A statement recorded under Section 108 of the Customs Act, 1962 is admissible and can constitute substantive evidence. However, while such a statement may be used against a co-noticee, prudence requires the Court to examine whether the incriminating parts are supported by verifiable facts or other circumstances. The evidence on record did not establish the alleged supply, transport, payment trail, or other verifiable links connecting the appellant with the seized goods. The appellant's denials were consistent, and the supposed corroborative circumstances relied upon by the Tribunal were found to be unverified and insufficient. In these circumstances, reliance placed only on the co-noticee's statement, without material corroboration, was held to be unsustainable.

Conclusion: The penalty against the appellant could not be sustained on the basis of the uncorroborated inculpatory statement of the co-noticee, and the finding of liability was set aside.

Ratio Decidendi: An inculpatory statement recorded under Section 108 of the Customs Act, 1962 is admissible and may be used against a co-noticee, but a finding of liability cannot rest on that statement alone unless the incriminating assertions are supported by corroborative facts or circumstances that are reasonably verifiable.

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