Penalty on CHA quashed as short payment of CVD was approved before clearance under Customs law

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....The CESTAT held that the short payment of CVD assessed on transaction value rather than RSP was approved by the Customs authorities prior to clearance, rendering the subsequent show cause notice unsustainable. The appellant did not suppress any material facts nor possess mens rea to evade duty. The penalty imposed on the appellant CHA was quashed due to lack of evidence of personal involvement or intent, and because the matter was one of legal interpretation rather than deliberate concealment. The show cause notice was also barred by limitation, as the extended period did not apply where facts were known at the time of clearance. Consequently, the penalty order was set aside and the appeal allowed.....