CESTAT upheld the penalty under section 112(b) of the Customs...

CESTAT upheld the penalty under section 112(b) of the Customs Act against appellant for dealing with an imported motorcycle liable for confiscation. While appellant purchased the vehicle with temporary registration and later obtained permanent registration, they failed to exercise due diligence required when purchasing and subsequently selling an imported motorcycle. The Tribunal found appellant had reason to believe the motorcycle was liable for confiscation. However, considering the mitigating factor that section 114AA charges were dropped by the Adjudicating Authority, indicating appellant did not knowingly make false declarations, CESTAT reduced the penalty from Rs.25,000 to Rs.10,000. Appeal partially allowed.

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