Tax authority's substitution of projected figures with actuals overturned; original acquisition valuation upheld; transfer pricing issues remitted for...
Beneficial owner held liable for differential customs duty; royalties added under Rule 10(1)(c); confiscation, penalties under s.111(m), s.114A, s.112...
The CESTAT allowed the appeals of A1, A2 and A3, setting aside confiscation of 227 bags of betel nuts and all penalties under s.112(b) of the Customs Act, 1962. The Bench held that, since betel nuts are not notified under s.123, the burden of proving smuggled/foreign origin rested on the department, which failed to adduce any cogent evidence of illegal import or foreign origin. The vehicle was intercepted in the domestic area with valid transport documents, and all statements consistently indicated Indian/local origin of the goods. The Tribunal held that an incorrect consignee address in transport bills, by itself, cannot justify a finding of smuggling. Consequently, confiscation, redemption fine and penalties were found unsustainable and were fully annulled.
The CESTAT allowed the appeals of A1, A2 and A3, setting aside confiscation of 227 bags of betel nuts and all penalties under s.112(b) of the Customs Act, 1962. The Bench held that, since betel nuts are not notified under s.123, the burden of proving smuggled/foreign origin rested on the department, which failed to adduce any cogent evidence of illegal import or foreign origin. The vehicle was intercepted in the domestic area with valid transport documents, and all statements consistently indicated Indian/local origin of the goods. The Tribunal held that an incorrect consignee address in transport bills, by itself, cannot justify a finding of smuggling. Consequently, confiscation, redemption fine and penalties were found unsustainable and were fully annulled.
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