The CESTAT set aside penalties imposed under sections 114(iii)...

The CESTAT set aside penalties imposed under sections 114(iii) and 117 of the Customs Act, 1962 against the appellant, a small-scale industry printer. The appellant had printed exercise notebooks for a third party without being declared as a supporting manufacturer in the EPCG license. The Tribunal determined that as a small vendor, the appellant could not reasonably be expected to know the export scheme details. The appellant's good faith was evidenced by proper payment of excise duty and accurate ER-1 returns. The Department failed to establish specific abetment by the appellant in any contravention committed by the principal exporter. Appeal allowed.