CESTAT set aside penalties under Section 112(a) of Customs Act...

CESTAT set aside penalties under Section 112(a) of Customs Act against appellant who was characterized as a financier in undervalued imports. The Tribunal found no evidence establishing appellant as the orchestrator of undervalued imports or that he possessed knowledge of improper practices. Though appellant had financed imports and voluntarily paid differential duty of Rs.30 lakh, this alone couldn't establish culpability. The Tribunal noted significant procedural violations including denial of cross-examination of co-accused witnesses and failure to provide essential import documents (Bills of Entry and invoices), constituting violations of natural justice principles. The statements of co-accused lacked evidentiary value without opportunity for cross-examination. Appeal allowed.

---