Revenue appeal dismissed; penalty under s.114AA inapplicable; s.121 elements unproven and re-determined FOB unsustainable for imposition

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....CESTAT dismissed the Revenue's appeal, upholding the Commissioner (Appeals) that penalty under s.114AA of the Customs Act, 1962 is inapplicable to the respondent, who was a domestic supplier and neither importer nor exporter. The Tribunal held there was no obligation on the respondent to make customs declarations, and the Revenue failed to establish the statutory elements under s.121 - that goods were smuggled, that such goods were sold, and that seized cash constituted proceeds of smuggling. Further, the Tribunal held authorities lack power to re-determine FOB value of exports; consequently the show-cause proceedings and consequent penalties predicated on re-determined FOB were unsustainable.....