Case Law Analysis
|Custom, Excise & Service Tax Tribunal
Customs Act Sections 114(iii) & 114AA | Penalty Invalid Without Direct Evidence of Knowledge or Collusion in Fraudulent Export : CESTAT Kolkata
CESTAT Kolkata has ruled that penalties under Customs Act Sections 114(iii) and 114AA cannot be imposed on customs brokers without direct evidence linking them to the intent or active participation in fraudulent export schemes. This reinforces the principle that mere association with defaulting exporters is insufficient - the burden of proving collusion rests squarely on the Revenue, safeguarding brokers from speculative liability.