https://www.taxtmi.com/caselaws?id=447114 CESTAT Delhi set aside penalties imposed under Section 114AA of Customs Act, 1962 on a firm and its director for allegedly selling duty-free gold in domestic market instead of using it for jewelry export. The tribunal held that customs authorities had accepted export obligation papers as proof of jewelry exports, fulfilling exemption notification conditions. Revenue's inference based on tally sheets showing only duty-free gold stock was rejected, citing CBIC Circular 23/2018 which clarified no one-to-one correlation required between imported precious metal and exported jewelry due to homogeneous nature. The adjudicating authority's penalty imposition was based on assumptions without evidence. Appeal allowed, penalties of Rs. 5 lakhs on firm and Rs. 1 lakh on director set aside. en-us Fri, 15 Dec 2023 00:00:00 +0530 Tue, 19 Dec 2023 09:01:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447114 CESTAT Delhi set aside penalties imposed under Section 114AA of Customs Act, 1962 on a firm and its director for allegedly selling duty-free gold in domestic market instead of using it for jewelry export. The tribunal held that customs authorities had accepted export obligation papers as proof of jewelry exports, fulfilling exemption notification conditions. Revenue's inference based on tally sheets showing only duty-free gold stock was rejected, citing CBIC Circular 23/2018 which clarified no one-to-one correlation required between imported precious metal and exported jewelry due to homogeneous nature. The adjudicating authority's penalty imposition was based on assumptions without evidence. Appeal allowed, penalties of Rs. 5 lakhs on firm and Rs. 1 lakh on director set aside. Case-Laws Customs Fri, 15 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447114