Customs duty on imported goods using purchased import licences fails; Section 108 statements rejected for noncompliance with Section 138B

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Duty liability could not be fastened on the appellant merely as a purchaser of import licences when the licences were issued by the competent authority and were not forged, and there was a recorded finding that the appellant was not party to any fraud by the seller; consequently, the demand against the appellant was unsustainable. Statements recorded under section 108 of the Customs Act were not admissible/reliable in the absence of compliance with section 138B, which requires examination of the maker as a witness, a reasoned finding on admissibility, and an opportunity of cross-examination; hence the statements could not support the demand. The impugned adjudication order was set aside and the appeal was allowed. - CESTAT....