Non-compliance with earlier remand directions, coupled with...

Non-compliance with earlier remand directions, coupled with reliance on investigation statements without the procedure required for their proof, rendered the penalty order unsustainable. The Tribunal noted that the adjudicating authority had ignored specific directions to produce examination records, contemporaneous export values and, if necessary, allow examination or cross-examination of officers. It further held that statements recorded during investigation could not be used to prove their contents because the mandatory admissibility procedure had not been followed. The Tribunal also ruled that penalty under Section 114(iii) could not be imposed for exports made in 1999-2000, as that penal provision was not then in force, and set aside the penalties.