The CESTAT set aside the penalties imposed under Sections...

The CESTAT set aside the penalties imposed under Sections 114(iii) and 117 of the Customs Act, 1962, on the appellant for allegedly exporting waste clothes disguised as ladies' scarves to claim duty drawback. The tribunal noted that the Commissioner's own findings indicated no evidence of abetment, omission, or contravention warranting confiscation or penalty under the cited provisions. Since the prerequisites for imposing penalties under Sections 114(iii) and 117 were not met, the penalties were held unsustainable and consequently quashed. However, the appellant was found guilty of negligence attracting action under the Customs Brokers Licensing Regulations, 2013, and the department was directed to initiate appropriate proceedings under those regulations. The appeal was allowed, and the penalty of Rs. 25,000 imposed under Section 114(iii) and the penalty under Section 117 were set aside.