Appeal allows marketing payments as deductible business expenses under Sec.37; director pay retained; R&D deductible from certificate date under Sec.3...
Registration under s.12AB upheld; CIT(Exemptions) exceeded jurisdiction by deciding taxability instead of preliminary verification and registration di...
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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