CESTAT says Customs Penalty Cannot Rest on Suspicion Alone

Chessman Impex was alleged to have diverted duty-free DEEC imports and exported maize instead of the stipulated steel products. CESTAT found that the CBI's investigation and accepted closure report, customs and excise certifications, export realisation and DGFT discharge certificate supported the assessee, while Revenue had no independent evidence establishing diversion or fraudulent exports. The demand and penalties were consequently set aside.