#customs penalty

CESTAT Hyderabad ruled that importers cannot be penalized for genuine disputes over customs tariff classification, shifting the burden of proof to the department. The tribunal also invalidated retrospective application of circulars that are adverse to importers, reinforcing natural justice in customs adjudication.

The CETAT holds that customs authorities cannot demand duty or impose penalties under Section 28AAA unless DGFT has first cancelled export incentive scrips. Key precedent for exporters and brokers.