CESTAT sets aside Section 114AA penalty but confirms Section 114(iii) penalty for container dispatch connivance in export scheme

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....CESTAT adjudicated penalties under Sections 114(iii) and 114AA of Customs Act, 1962 concerning overvaluation scheme for undue drawback claims and illegal export attempts. Appellant No. 1's penalty under Section 114AA was set aside as no direct involvement with subject goods was established, however penalty under Section 114(iii) was confirmed based on appellant's statement admitting container dispatch and presence during loading operations, demonstrating connivance with exporter. Appellant No. 2's penalties under both sections were upheld after tribunal found evidence of monitoring illegal export activities through WhatsApp communications and awareness of syndicate operations. Appeal disposed with mixed outcome - partial relief for Appellant No. 1, complete confirmation of penalties against Appellant No. 2.....