Customs penalty under Section 112(a) and Section 114AA fails where allegations are unproved and electronic records are inadmissible.

Penalty under Section 112(a) and Section 114AA of the Customs Act was found unsustainable because the main allegation was not properly investigated or established, the burden of proof remained undischarged, and the electronic documents relied on were not admissible in evidence. Applying its earlier orders on identical facts, the CESTAT held that the evidentiary basis for penalty failed, and the penalty was set aside.

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Issues: Whether the imposition of penalty under Section 112(a) and Section 114AA of the Customs Act, 1962 was sustainable in law.

Analysis: The challenge was confined to the penalty. The Tribunal applied its earlier orders on identical facts and noted that the main allegation had not been properly investigated or established, the burden of proof remained undischarged, and the electronic documents relied upon were not admissible as evidence. In those circumstances, the basis for penalty did not survive.

Conclusion: The penalty was held to be unsustainable and set aside in favour of the assessee.

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