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| The Tax Publishers2020 TaxPub(EX) 1043 CUSTOMS ACT, 1962
Section 112
Where penalty under section 112 was imposed on assessee for his alleged involvement in smuggling of Bangladesh currency, considering that no case was established by revenue through reliable evidences, directly or indirectly connecting assessee in connection with the seized Bangladesh currency-Taka, penalty imposed on assessee was unwarranted.
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Penalty under section 112 - Validity - Alleged involvement in smuggling of Bangladesh currency -
Assessee was issued a SCN along with two other persons for his alleged involvement in smuggling of Bangladesh currency. SCN proposed imposition of penalty under section 112 of the Customs Act, 1962. Issue was as to whether penalty was to be imposed on alleged offences framed against assessee. Held: Not allowing assessee to cross-examine the persons by Adjudicating Authority, though the statements of those persons were made the basis of order, tantamount to serious flaw which makes the order a nullity inasmuch as it amounted to violation of principles of natural justice because of which the appellant was adversely affected. Case of revenue remained disapproved as the investigation was inconclusive and insufficient in the absence of corroborative/substantial evidences. Case was only based on the statement of M and on assumption, presumption or suspicion. As no case was established by revenue through reliable evidences, directly or indirectly connecting assessee in connection with the seized Bangladesh currency-Taka, penalty imposed on assessee was unwarranted.
Followed:Andaman Timber Industries v. CCE 2015 (324) ELT 641 (SC) : 2015 TaxPub(EX) 2155 (SC).
REFERRED : Comnr. of Central Excise, Calcutta-II v. Andaman Timber Industries Ltd. 2005 (187) ELT A33 (SC).
FAVOUR : In assessee's favour.
A.Y. :
IN THE CESTAT, KOLKATA BENCH
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