CESTAT allowed the appeals and set aside penalties imposed on...

CESTAT allowed the appeals and set aside penalties imposed on the appellant courier for alleged mis-declaration and undervaluation in courier imports, holding that penalties under s.112 and s.114AA cannot be imposed absent evidence of knowledge, intention or abetment. The Tribunal treated the statement under s.108 as corroborative that document manipulation was by the importer or foreign consignor, not the courier, and emphasised that filing courier bills based on importer-provided documents and the normal practice of couriers to rely on booking customers do not constitute culpable conduct. As the Department failed to discharge the burden of proving the requisite mens rea or abetment, confiscation-linked penalties were unsustainable and were quashed.