Dependent Agent PE unresolved for lack of factual inquiry; arm's-length distribution accepted; royalty claim rejected; 15% refund interest (Section 24...
Exemption under s.10(23C)(iiiad) upheld; appeal allowed, interest and dividends excluded from annual receipts, disallowance deleted, capital gains exe...
CESTAT allowed the appeal, set aside the impugned order dated 09.01.2020 and quashed the demand and penalties. The Tribunal held that the second proviso to the relevant Notification had been omitted during the period in issue, removing any statutory obligation on the bank or the appellant to execute the condition purportedly breached; consequently recovery of customs duty was without authority of law. Statements recorded under s.108 were inadmissible because the s.138B procedure was not complied with. In view of these findings the demand under the Notification, penalty under s.112 and penalty against a partner under s.114AA were all set aside.
CESTAT allowed the appeal, set aside the impugned order dated 09.01.2020 and quashed the demand and penalties. The Tribunal held that the second proviso to the relevant Notification had been omitted during the period in issue, removing any statutory obligation on the bank or the appellant to execute the condition purportedly breached; consequently recovery of customs duty was without authority of law. Statements recorded under s.108 were inadmissible because the s.138B procedure was not complied with. In view of these findings the demand under the Notification, penalty under s.112 and penalty against a partner under s.114AA were all set aside.
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