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2017 (11) TMI 554 - AT - CustomsPenalty u/s 114AA - There is no evidence of the appellant carrying precious or semi-precious stones in the past out of country and again bringing it into India in violation of provisions of Customs Act. The impugned order is purely based on presumption and evidence of statement of purchase of these goods in India - Held that: - We find that there is no corroborative evidence on these transportation of impugned goods from India and back to India. The evidences which will categorically establish such movement are not available. It would appear that the lower authorities mostly based their finding on the general statement of the appellant about past activities and also on that he travelled many times abroad. To demand and recover customs duty it is necessary to establish the importation of dutiable goods into India. The Revenue apparently made certain presumptions based on certain collected evidence regarding purchase of cut or polished stones in Jaipur by the appellant. Beyond this, there is no evidence of its movement out of country and reimportation into India. Confirmation of duty cannot be made based on presumptions and assumptions - duty and penalty set aside. A perusal of Section 114AA shows that penalty is imposable under the said Section on a person who knowingly or intentionally makes signs or uses in declaration statement or document which is false or incorrect in any material particulars in the transaction of any business for the purpose of this Act. The said person shall be liable to penalty not exceeding five times the value of goods. The lower authorities did not justify with the reason for imposition of penalty separately u/s 114AA when equal amount of penalty has already been imposed under Section 114A. In fact, what type of false or incorrect materials were submitted by the appellant was not discussed - penalty set aside. Appeal allowed - decided in favor of appellant.
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