Concessional penalty for search-disclosed unreconciled jewellery applies where substantive disclosure conditions are met despite omission from origina...
CESTAT allowed the appeal and set aside penalties imposed on the appellant under s.112(a) and s.114AA of the Customs Act, 1962. The Tribunal found the appellant acted solely as agent of the foreign supplier and had sought first check assessment but was denied access; therefore there was no material to sustain a finding that the appellant aided or abetted duty evasion, rendering s.112(a) inapplicable. Further, s.114AA was held inapplicable because it penalizes fraudulent export claims for export benefits, whereas the transaction involved importation; consequently s.114AA could not be invoked. The impugned penalties were quashed and the appeal allowed.
CESTAT allowed the appeal and set aside penalties imposed on the appellant under s.112(a) and s.114AA of the Customs Act, 1962. The Tribunal found the appellant acted solely as agent of the foreign supplier and had sought first check assessment but was denied access; therefore there was no material to sustain a finding that the appellant aided or abetted duty evasion, rendering s.112(a) inapplicable. Further, s.114AA was held inapplicable because it penalizes fraudulent export claims for export benefits, whereas the transaction involved importation; consequently s.114AA could not be invoked. The impugned penalties were quashed and the appeal allowed.
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