The appellant, HAIL, was engaged in slaughtering animals and...

The appellant, HAIL, was engaged in slaughtering animals and exporting meat during the relevant period. It availed the benefit of the VKGUY scheme, which provides incentives in the form of scrips for exporters of agricultural and village industry products. The department alleged that HAIL exported meat using pre-signed and pre-stamped veterinary certificates without actual inspection of animals. The Show Cause Notice (SCN) relied on 22 documents, including 14 statements recorded u/s 108 of the Customs Act. However, as per Section 138B, these statements can only be relevant if the persons are dead, cannot be found, or are examined as witnesses. The adjudicating authority did not follow this procedure. Without the statements, the remaining 8 documents did not establish that HAIL exported meat using pre-signed certificates. Consequently, the penalties imposed on HAIL and individuals could not be sustained, and the impugned order upholding the Order-in-Original needed to be set aside.