Penalty under Section 114AA set aside; improper CVD valuation and inadmissible statements cited

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....The CESTAT set aside the order of the Principal Commissioner imposing penalty under section 114AA of the Customs Act, 1962, and rejecting the declared retail sale price for CVD assessment. The Tribunal held that statements under section 108 Customs Act were inadmissible as the procedure under section 138B was not followed. Since no duty shortfall was established, penalty under section 114A could not be imposed. The retail sale price determination was flawed as the Central Excise Rules 2008 do not prescribe a mechanism for CVD valuation absent declared retail price, and the re-determination based on MRP lists was improper due to lack of evidence proving incorrectness of declared values. Allegations of mis-utilisation of DFIA scrips were unsubstantiated. Consequently, the demand and penalties were quashed, and the appeal was allowed.....