Section 112(1) Customs penalty failed for lack of corroborative evidence linking the appellant to smuggled goods

Penalty under Section 112(1) of the Customs Act was held unsustainable where the record showed a finance-cum-sale agreement and a statement that the vehicle had been sold or hired to another person who had actual control over its transportation. The revenue did not produce corroborative evidence linking the appellant to loading, unloading, transportation, change of number plates, or the smuggled goods themselves. On that unsubstantiated record, the penalty was set aside.

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Issues: Whether the penalty imposed under Section 112(1) of the Customs Act, 1962 was sustainable against the appellant.

Analysis: The appellant produced a finance-cum-sale agreement and the record also contained a statement indicating that the vehicle had been sold or hired out to Kishore Gaur, who was shown to have actual control over the vehicle and its transportation activity. The revenue material did not establish by corroborative evidence that the appellant led the loading, unloading, transportation, or change of number plates, nor did it satisfactorily connect him to the smuggled goods. On the available record, the Tribunal found the case against the appellant for penalty to be unsubstantiated.

Conclusion: The penalty under Section 112(1) was set aside.

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