Opportunity to furnish unsecured-loan confirmations is required before reassessment initiation; proceedings require fresh consideration after taxpayer...
Under-reporting on a first reassessment return attracts penalty, while enhanced misreporting penalty requires proof of a statutory misreporting catego...
CESTAT allowed the appeal and set aside the penalty under s.112, Customs Act, 1962. The Tribunal found the appellant acted solely as a broker for commission and that the impugned order rested only on uncorroborated inculpatory statements which the appellant retracted. Statements recorded under s.108 were inadmissible in adjudication as the procedural safeguards in s.138B (examination/cross-examination) were not satisfied. The adjudicator failed to demonstrate how the alleged commercial link implicated the appellant in over-invoicing or circular trading. Further, s.112 was inapplicable: no prohibition was in force, no duty was payable, alleged value was not higher than declared, and no duty evasion was established.
CESTAT allowed the appeal and set aside the penalty under s.112, Customs Act, 1962. The Tribunal found the appellant acted solely as a broker for commission and that the impugned order rested only on uncorroborated inculpatory statements which the appellant retracted. Statements recorded under s.108 were inadmissible in adjudication as the procedural safeguards in s.138B (examination/cross-examination) were not satisfied. The adjudicator failed to demonstrate how the alleged commercial link implicated the appellant in over-invoicing or circular trading. Further, s.112 was inapplicable: no prohibition was in force, no duty was payable, alleged value was not higher than declared, and no duty evasion was established.
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TaxTMI 
TaxTMI 
of 4915 
