#Section 138B

CESTAT Chennai ruled that statements recorded under Section 108 of the Customs Act cannot be relied upon for customs valuation or penalty imposition unless the mandatory procedure under Section 138B is followed. This holding reinforces procedural safeguards for importers and beneficial owners, limiting arbitrary reliance on uncorroborated statements in customs disputes.

The Customs Appellate Tribunal holds that penalty under Section 112 cannot be imposed solely on statements recorded under Section 108 without complying with mandatory admissibility procedures under Section 138B.

The Customs Appellate Tribunal holds that penalties under Section 112(b)(i) cannot be sustained without valid statements under Section 138B, establishing procedural compliance as essential for mens rea.

The CESTAT holds that failure to permit cross-examination of witnesses whose statements are relied upon violates natural justice, mandating remand under Section 138B of the Customs Act.